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KIRBY CORP

KIRBY CORPKEXEarnings & Financial Report

NYSE · water transport

Kirby Corporation, headquartered in Houston, Texas, is the largest tank barge operator in the United States, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, along all three U.S. Coasts, and in Alaska and Hawaii. Products transported by Kirby include petrochemicals, black oil, refined petroleum products, and agricultural chemical products by tank barge. Kirby also owns and operates eight ocean-going barge and tug units transporting ...

What changed in KIRBY CORP's 10-K — 2022 vs 2023

Top changes in KIRBY CORP's 2023 10-K

335 paragraphs added · 364 removed · 285 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

112 edited+18 added−23 removed146 unchanged
San Jac Marine, LLC (“San Jac”), a subsidiary of Kirby Inland Marine, owns and operates a shipyard in Channelview, Texas which builds marine vessels for both inland and coastal applications, and provide maintenance and repair services. Kirby Inland Marine also builds inland towboats and performs routine maintenance and repairs at the shipyard.
San Jac Marine, LLC (“San Jac”), a subsidiary of Kirby Inland Marine, owns and operates a shipyard in Channelview, Texas which builds marine vessels for both inland and coastal applications, and provide maintenance and repair services. Kirby Inland Marine also builds inland towboats and performs routine maintenance and repairs at the San Jac shipyard.
Raj Kumar is a member of CPA Australia and holds a Master of Business Administration degree from Columbia University in New York City and a Bachelor of Business in Accounting from Deakin University in Australia. He has served as Executive Vice President and Chief Financial Officer since November 2021. Prior to joining the Company, Mr.
Raj Kumar is a member of CPA Australia and holds a Master of Business Administration degree from Columbia University in New York City and a Bachelor of Business in Accounting degree from Deakin University in Australia. He has served as Executive Vice President and Chief Financial Officer since November 2021. Prior to joining the Company, Mr.
The Company, through KDS, sells after-market service and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related oilfield services equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway and other industrial applications.
The Company, through KDS, sells after-market services and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related oilfield services equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway and other industrial applications.
The Company has established relationships with trade schools, world-class universities, professional associations and industry groups to proactively attract talent. The Company has also implemented several measures and development programs that include training to help increase awareness and drive inclusive behaviors, identifying areas for improvement and providing oversight for hiring, promotions, and mentoring.
The Company has established relationships with trade schools, world-class universities, professional associations and industry groups to proactively attract talent. 18 The Company has also implemented several measures and development programs that include training to help increase awareness and drive inclusive behaviors, identifying areas for improvement and providing oversight for hiring, promotions, and mentoring.
The marine transportation inland operation moves and handles a broad range of sophisticated cargoes. To meet the specific requirements of the cargoes transported, the inland tank barges may be equipped with self-contained heating systems, high-capacity 9 pumps, pressurized tanks, refrigeration units, stainless steel tanks, aluminum tanks or specialty coated tanks.
The marine transportation inland operation moves and handles a broad range of sophisticated cargoes. To meet the specific requirements of the cargoes transported, the inland tank barges may be equipped with self-contained heating systems, high-capacity pumps, pressurized tanks, refrigeration units, stainless steel tanks, aluminum tanks or specialty coated tanks.
During 2021, the Company’s inland barge utilization improved to the mid-to high 80% range by the fourth quarter as the economy began 6 to recover from the COVID-19 pandemic. During 2022, the Company’s inland barge utilization improved to the low 90% range reflecting increased activity levels as a result of higher refinery and petrochemical plant utilization.
During 2021, the Company’s inland barge utilization improved to the mid-to high 80% range by the fourth quarter as the economy began to recover from the COVID-19 pandemic. During 2022, the Company’s inland barge utilization improved to the low 90% range reflecting increased activity levels as a result of higher refinery and petrochemical plant utilization.
Refer to Human Capital below for further discussion regarding training programs the Company has developed and instituted. Quality. Kirby Inland Marine has made a substantial commitment to the implementation, maintenance, and improvement of quality assurance systems. Kirby Offshore Marine is certified under ABS ISM standards.
Refer to Human Capital below for further discussion regarding training programs the Company has developed and instituted. 17 Quality. Kirby Inland Marine has made a substantial commitment to the implementation, maintenance, and improvement of quality assurance systems. Kirby Offshore Marine is certified under ABS ISM standards.
Since the marine business is linked to the relative health of the inland towboat, offshore and coastal tugboat, harbor docking tugboat, offshore oilfield service, oil and gas drilling, offshore commercial fishing industries, Great Lakes ore vessels, dredging vessels, coastal ferries, United States government vessels and the pleasure craft industry, there is no assurance that its present gross revenues can be maintained in the future. 16 The Company’s on-highway customers are long-haul and short-haul trucking companies, commercial and industrial companies with truck fleets, buses owned by municipalities and private companies.
Since the marine business is linked to the relative health of the inland towboat, offshore and coastal tugboat, harbor docking tugboat, offshore oilfield service, oil and gas drilling, offshore commercial fishing industries, Great Lakes ore vessels, dredging vessels, coastal ferries, United States government vessels and the pleasure craft industry, there is no assurance that its present gross revenues can be maintained in the future. 13 The Company’s on-highway customers are long-haul and short-haul trucking companies, commercial and industrial companies with truck fleets, buses owned by municipalities and private companies.
Dragg is a Certified Public Accountant and holds a Master of Science in Accountancy degree from the University of Houston and a degree in finance from Texas A&M University. He has served the Company as Vice President, Controller and Assistant 20 Secretary since April 2014.
Dragg is a Certified Public Accountant and holds a Master of Science in Accountancy degree from the University of Houston and a degree in finance from Texas A&M University. He has served the Company as Vice President, Controller and Assistant Secretary since April 2014.
He served as Director – Public & Government Affairs from 2014 to October 2017 after joining the Company as Director – Government Affairs in 2004. Prior to joining the Company, he was a maritime lawyer in private practice and Vice President and General Counsel of Coastal Towing, Inc.
He served as Director – Public & Government Affairs from 2014 to October 2017 after joining the Company as Director – Government Affairs in 2004. Prior to joining the Company, he was a maritime lawyer in private practice and Vice President and General Counsel of Coastal Towing, Inc. 20
Kumar served as Vice President and Chief Financial Officer of Dril-Quip, Inc. from 2020 to 2021, Vice President and Chief Accounting Officer from 2019 to 2020, and Vice President and Treasurer from 2017 to 2019. Prior to joining Dril-Quip, he served as Vice President Finance at Frank ’ s International from 2015 to 2017.
Kumar served as Vice President and 19 Chief Financial Officer of Dril-Quip, Inc. from 2020 to 2021, Vice President and Chief Accounting Officer from 2019 to 2020, and Vice President and Treasurer from 2017 to 2019. Prior to joining Dril-Quip, he served as Vice President Finance at Frank ’ s International from 2015 to 2017.
Customers are served through a network of 65 branch locations across 17 states and Colombia, South America, as well as a proprietary on-line marketplace, www.dieseldash.com. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, for North American as well as for international oilfield service companies, and oil and gas operator and producer markets.
Customers are served through a network of 63 branch locations across 17 states and Colombia, South America, as well as a proprietary on-line marketplace, www.dieseldash.com. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, for North American as well as for international oilfield service companies, and oil and gas operator and producer markets.
These factors generally help to reduce the number of waterway incidents. Inland Tank B arge Industry The Company operates within the United States inland tank barge industry, a diverse and independent mixture of approximately 30 large integrated transportation companies and small operators, as well as captive fleets owned by refining and petrochemical companies.
These factors generally help to reduce the number of waterway incidents. Inland Tank B arge Industry The Company operates within the United States inland tank barge industry, a diverse and independent mixture of approximately 25 large integrated transportation companies and small operators, as well as captive fleets owned by refining and petrochemical companies.
The Company typically maintains a higher mix of term contracts to spot contracts to provide the Company with a reasonably predictable revenue stream while maintaining spot market exposure to take advantage of new business opportunities and customers’ peak demands. During 2021 and 2020, approximately 65% of inland marine transportation revenues were under term contracts and 35% were spot contract revenues.
The Company typically maintains a higher mix of term contracts to spot contracts to provide the Company with a reasonably predictable revenue stream while maintaining spot market exposure to take advantage of new business opportunities and customers’ peak demands. During 2021, approximately 65% of inland marine transportation revenues were under term contracts and 35% were under spot contracts.
Prior to that, he served as a segment controller at LyondellBasell and in Division CFO, treasury, strategic planning and corporate development positions at FMC and Dell Technologies. Christian G. O’Neil holds a Master of Business Administration degree from Rice University, a doctorate of jurisprudence from Tulane University and a bachelor of arts degree from Southern Methodist University.
Prior to that, he served as a segment controller at LyondellBasell and in Division CFO, treasury, strategic planning and corporate development positions at FMC and Dell Inc. Christian G. O’Neil holds a Master of Business Administration degree from Rice University, a doctorate of jurisprudence from Tulane University and a bachelor of arts degree from Southern Methodist University.
The nation’s inland waterways are vital to the United States distribution system, with over 1.1 billion short tons of cargo moved annually on United States shallow draft waterways. The inland waterway system extends approximately 26,000 miles, 12,000 miles of which are generally considered significant for domestic commerce, through 38 states, with 635 shallow draft ports.
The nation’s inland waterways are vital to the United States distribution system, with over one billion short tons of cargo moved annually on United States shallow draft waterways. The inland waterway system extends approximately 26,000 miles, 12,000 miles of which are generally considered significant for domestic commerce, through 38 states, with 635 shallow draft ports.
The increase from 2,750 tank barges in 2006 to approximately 4,000 by the end of 2019 primarily resulted from increased barge construction and deferred retirements due to strong demand and resulting capacity shortages. The number of industry tank barges has remained relatively constant from 2019 through the end of 2022.
The increase from 2,750 tank barges in 2006 to approximately 4,000 by the end of 2019 primarily resulted from increased barge construction and deferred retirements due to strong demand and resulting capacity shortages. The number of industry tank barges has remained relatively constant from 2019 through the end of 2023.
Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 20% of the segment’s 2022 revenues. The Company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers. Agricultural Chemicals.
Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 20% of the segment’s 2023 revenues. The Company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers. Agricultural Chemicals.
Agricultural chemicals transported represented 3% of the segment’s 2022 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist mainly of domestic and foreign producers of such products.
Agricultural chemicals transported represented 3% of the segment’s 2023 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist mainly of domestic and foreign producers of such products.
During 2020 through 2022, the Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast, albeit, at reduced levels as some of the product was transported by newly constructed pipelines.
During 2021 through 2023, the Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast, albeit, at reduced levels as some of the product was transported by newly constructed pipelines.
The following documents are available on the Company’s website in the Investor Relations section under Corporate Governance: • Audit Committee Charter • Compensation Committee Charter • ESG and Nominating Committee Charter • Business Ethics Guidelines • Corporate Governance Guidelines The Company is required to make prompt disclosure of any amendment to or waiver of any provision of its Business Ethics Guidelines that applies to any director or executive officer or to its chief executive officer, chief financial officer, chief accounting officer or controller or persons performing similar functions.
The following documents are available on the Company’s website in the Investor Relations section under Governance Documents: • Audit Committee Charter • Corporate Governance Guidelines • Compensation Committee Charter • Clawback Policy • ESG and Nominating Committee Charter • Insider Trading Policy • Business Ethics Guidelines The Company is required to make prompt disclosure of any amendment to or waiver of any provision of its Business Ethics Guidelines that applies to any director or executive officer or to its chief executive officer, chief financial officer, chief accounting officer or controller or persons performing similar functions.
The Company presently pays a federal fuel user tax of 29.1 cents per gallon consisting of a 0.1 cent per gallon leaking underground storage tank tax and 29 cents per gallon waterways user tax. 12 Security Requirements.
The Company presently pays a federal fuel user tax of 29.1 cents per gallon consisting of a 0.1 cent per gallon leaking underground storage tank tax and 29 cents per gallon waterways user tax. 15 Security Requirements.
The Company believes that among the major elements of a successful and productive work force are effective training programs. The Company also believes that training in the proper performance of a job enhances both the safety and quality of the service provided. New technology, regulatory compliance, personnel safety, quality and environmental concerns create additional demands for training.
The Company believes that among the major elements of a successful and productive workforce are effective training programs. The Company also believes that training in the proper performance of a job enhances both the safety and quality of the service provided. New technology, regulatory compliance, personnel safety, quality and environmental concerns create additional demands for training.
Customers include oilfield service companies, and oil and gas operators and producers. No single customer of KDS accounted for 10% or more of the Company’s revenues in 2022, 2021, or 2020. KDS also provides service to KMT, which accounted for approximately 3% of KDS’s 2022 revenues, 2% of the segment’s 2021 revenue, and 3% of the segment's 2020 revenues.
Customers include oilfield service companies, and oil and gas operators and producers. No single customer of KDS accounted for 10% or more of the Company’s revenues in 2023, 2022, or 2021. KDS also provides service to KMT, which accounted for approximately 3% of KDS’s 2023 and 2022 revenues, and 2% of the segment's 2021 revenues.
The Company, through its marine transportation segment (“KMT”), is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The Company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge.
The Company, through KMT, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The Company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge.
The medium-speed operations are located in Houma, Louisiana, Houston, Texas, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington, and Tampa, Florida, serving as the authorized distributor for EMD Power Products (“EMD”) throughout the United States. The Company is also a distributor and representative for certain Alfa Laval 15 products in the Midwest and on the East Coast, Gulf Coast, and West Coast.
The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, 12 Paducah, Kentucky, Seattle, Washington, and Tampa, Florida, serving as the authorized distributor for EMD Power Products (“EMD”) throughout the United States. The Company is also a distributor and representative for certain Alfa Laval products in the Midwest and on the East Coast, Gulf Coast, and West Coast.
The results of the Company’s oil and gas distribution and services operations are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries. 17 Oil and Gas Competitive Conditions The Company’s primary competitors are other oilfield equipment manufacturers and remanufacturers, and equipment service companies.
The results of the Company’s oil and gas distribution and services operations are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries. Oil and Gas Competitive Conditions The Company’s primary competitors in the oil and gas market are other oilfield equipment manufacturers and remanufacturers, and equipment service companies.
During 2022, the Company’s inland marine transportation operation moved over 55 million tons of liquid cargo on the United States inland waterway system. Petrochemicals. Bulk liquid petrochemicals transported include such products as benzene, styrene, methanol, acrylonitrile, xylene, naphtha and caustic soda. These products are consumed in the production of paper, fiber and plastics.
During 2023, the Company’s inland marine transportation operation moved over 56 million tons of liquid cargo on the United States inland waterway system. Petrochemicals. Bulk liquid petrochemicals transported include such products as benzene, styrene, methanol, acrylonitrile, xylene, naphtha and caustic soda. These products are consumed in the production of paper, fiber and plastics.
Succession planning is a key responsibility of the CEO and the Chief Human Resources Officer and is a critical annual process for the Company’s senior management and its Board. Senior management reviews their succession plans regularly throughout the year and on an annual basis provides the Board an in-depth review of the top three levels of management.
Succession planning is a key responsibility of the CEO and the Vice President – Human Resources and is a critical annual process for the Company’s senior management and its Board. Senior management reviews their succession plans regularly throughout the year and on an annual basis provides the Board an in-depth review of the top three levels of management.
In addition, approximately 107 vessel crew members of Penn Maritime Inc., a wholly owned subsidiary of Kirby Offshore Marine, are represented by the Seafarers International Union under a collective bargaining agreement in effect through May 1, 2025. KDS has approximately 1,975 employees. None of the United Holdings and Kirby Engine Systems operations are subject to collective bargaining agreements.
In addition, approximately 108 vessel crew members of Penn Maritime Inc., a wholly owned subsidiary of Kirby Offshore Marine, are represented by the Seafarers International Union under a collective bargaining agreement in effect through May 1, 2025. KDS has approximately 2,270 employees. None of the United Holdings and Kirby Engine Systems operations are subject to collective bargaining agreements.
Pressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges. The transportation of petrochemical products represented 49% of the segment’s 2022 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil.
Pressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges. The transportation of petrochemical products represented 51% of the segment’s 2023 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil.
The commercial and industrial operations represented approximately 56% of the segment’s 2022 revenues. The Company is engaged in the overhaul and repair of medium-speed and high-speed marine diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry.
The commercial and industrial operations represented approximately 59% of the segment’s 2023 revenues. The Company is engaged in the overhaul and repair of medium-speed and high-speed marine diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry.
She also served as Vice President and General Counsel from January 2017 to April 2019, Vice President – Legal from January 2008 to January 2017 and Corporate Counsel from November 1999 through December 2007. Prior to joining the Company, she served as Corporate Counsel of Hollywood Marine from 1996 to 1999 after joining Hollywood Marine in 1994. Scott P.
She also served as Vice President and General Counsel from January 2017 to April 2019, Vice President – Legal from January 2008 to January 2017 and Corporate Counsel from November 1999 through December 2007. Prior to joining the Company, she served as Corporate Counsel of Hollywood Marine from 1996 to 1999 after joining Hollywood Marine in 1994. Julie M.
Approximately 54 S&S employees in New Jersey are subject to a collective bargaining agreement with the Local 15C, International Union of Operating Engineers, AFL-CIO that expires in October 2023. The remaining S&S employees are not subject to collective bargaining agreements. Training and Development.
Approximately 50 S&S employees in New Jersey are subject to a collective bargaining agreement with the Local 15C, International Union of Operating Engineers, AFL-CIO that expires in October 2028. The remaining S&S employees are not subject to collective bargaining agreements. Training and Development.
Strahan attended Nicholls State University and has served the Company as President of Kirby Engine Systems since May 1999, President of Marine Systems since 1986 and President of Engine Systems since 1996. After joining the Company in 1982 in connection with the acquisition of Marine Systems, he served as Vice President of Marine Systems until 1985. Kim B.
Strahan attended Nicholls State University and has served the Company as President of Kirby Engine Systems since May 1999, President of Marine Systems since 1986 and President of Engine Systems since 1996. After joining the Company in 1982 in connection with the acquisition of Marine Systems, he served as Vice President of Marine Systems until 1985. Ronald A.
Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 58% of the marine transportation’s inland revenues under term contracts during 2022 and 2021, and 66% of the revenue under term contracts during 2020.
Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 63% of the marine transportation’s inland revenues under term contracts during 2023, and 58% of the revenue under term contracts during 2022 and 2021.
A spot contract is an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate and are subject to market volatility.
Spot contracts typically involve an agreement with a customer to move cargo from a specific origin to a designated destination for a rate negotiated at the time the cargo movement takes place. Spot contract rates are at the current “market” rate and are subject to market volatility.
Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel). Such products represented 28% of the segment’s 2022 revenues.
Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel). Such products represented 26% of the segment’s 2023 revenues.
During 2022, approximately 60% of inland marine transportation revenues were under term contracts and 40% were spot contract revenues. Coastal time charters represented approximately 85% of the marine transportation’s coastal revenues under term contracts in 2021 and approximately 90% of coastal revenues under term contracts in 2022 and 2020.
During both 2022 and 2023, approximately 60% of inland marine transportation revenues were under term contracts and 40% were under spot contracts. Coastal time charters represented approximately 85% of the marine transportation’s coastal revenues under term contracts in 2021 and approximately 90% of coastal revenues under term contracts in 2022 and 2023.
During 2022, approximately 1,673 certificates were issued for the completion of courses at the training facility, of which approximately 1,068 were USCG approved classes and the balance were employee development and Company required classes, including leadership, communication, and navigation courses. The Company uses the Seaman’s Church Institute as an additional training resource for its wheelhouse crewmembers.
During 2023, approximately 1,750 certificates were issued for the completion of courses at the training facility, of which approximately 930 were USCG approved classes and the balance were employee development and Company required classes, including leadership, communication, and navigation courses. The Company uses the Seaman’s Church Institute as an additional training resource for its wheelhouse crewmembers.
Furthermore, barging is much more energy efficient. One ton of bulk product can be carried 675 miles by inland barge on one gallon of fuel, compared to 472 miles by railcar or 151 miles by truck.
Furthermore, barging is much more energy efficient. One ton of bulk product can be carried 675 miles by inland barge on one gallon of fuel on a typical tow, compared to 472 miles by railcar or 151 miles by truck for typical transits.
The average age of the nation’s inland tank barge fleet is approximately 17 years.
The average age of the nation’s inland tank barge fleet is approximately 18 years.
The number of older tank barges, coupled with low industry-wide barge utilization levels and ballast water treatment regulations, could lead to further retirements of these older tank barges in the next few years. Competition in the Ta nk Barge Industry The tank barge industry is very competitive.
The number of older tank barges, coupled with ballast water treatment regulations, could lead to further retirements of these older tank barges in the next few years. Competition in the Ta nk Barge Industry The tank barge industry is very competitive.
While price is a major determinant in the competitive process, reputation, consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids.
While price is a major determinant in the competitive process, equipment availability, reputation, 14 consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids. Governmental Regulations General.
The Company is the largest inland tank barge carrier, both in terms of number of barges and total fleet barrel capacity. The Company’s inland tank barge fleet has grown from 71 tank barges in 1988 to 1,037 tank barges as of December 31, 2022, or approximately 26% of the estimated total number of domestic inland tank barges.
The Company is the largest inland tank barge carrier, both in terms of number of barges and total fleet barrel capacity. The Company’s inland tank barge fleet has grown from 71 tank barges in 1988 to 1,076 tank barges as of December 31, 2023, or approximately 27% of the estimated total number of domestic inland tank barges.
A typical Company lower Mississippi River linehaul tow of 15 barges has the carrying capacity of approximately 216 railroad tank cars plus six locomotives, or approximately 1,050 tractor-trailer tank trucks. The Company’s inland tank barge fleet capacity of 23.1 million barrels equates to approximately 38,600 railroad tank cars or approximately 121,000 tractor-trailer tank trucks.
A typical Company lower Mississippi River linehaul tow of 15 barges has the carrying capacity of approximately 216 railroad tank cars plus six locomotives, or approximately 1,050 tractor-trailer tank trucks. The Company’s inland tank barge fleet capacity of 23.7 million barrels equates to approximately 39,700 railroad tank cars or approximately 124,000 tractor-trailer tank trucks.
The tank barges operating are in the 10,000 to 195,000 barrel capacity range and coastal tugboats in the 2,400 to 10,000 horsepower range. Kirby Offshore Marine’s vessels call on various coastal ports from Maine to Texas, servicing refineries, storage terminals and power plants.
The tank barges operating are in the 10,000 to 195,000 barrel capacity range and coastal tugboats in the 2,400 to 10,000 horsepower range. Kirby Offshore Marine’s vessels call on various coastal ports from Maine to Texas, servicing refineries, storage terminals and power plants. The Company also services refineries and storage terminals from Southern California to Washington State.
The USCG has not yet promulgated these regulations; however, the Company anticipates that they will not be more difficult to comply with than the oil spill plans. Occupational Health Regulations. The Company’s inspected vessel operations are primarily regulated by the USCG for occupational health standards. Uninspected vessel operations and the Company’s shore-based personnel are subject to OSHA regulations.
The USCG has not yet promulgated these regulations; however, the Company anticipates that they will not be more difficult to comply with than the oil spill plans. Occupational Health Regulations. The Company’s inspected vessel operations are primarily regulated by the USCG for occupational health standards.
As noted above, the Company believes that both inland and coastal marine transportation of bulk liquid products enjoy a substantial cost advantage over railroad and truck transportation.
As noted above, the Company believes that both inland and coastal marine transportation of bulk liquid products enjoy a substantial cost advantage over railroad and truck transportation on a barrel per mile basis.
The Company is aware of no specialized coastal articulated tank barge and tugboat units (“ATB”) that were delivered in 2022 with no further coastal tank barges currently under construction. The coastal tank barge fleet has approximately 21 tank barges that are over 25 years old.
The Company is aware of no specialized coastal articulated tank barge and tugboat units (“ATB”) that were delivered in 2023 with no further ATBs currently under construction. The coastal tank barge fleet has approximately 20 tank barges that are over 25 years old industry-wide.
Environmen tal Regulations The Company’s operations are affected by various regulations and legislation enacted for protection of the environment by the United States government, as well as many coastal and inland waterway states and international jurisdictions to the extent that the Company’s vessels transit in international waters.
Environmental Regulations The Company’s operations are affected by various regulations and legislation enacted for protection of the environment by the United States government, as well as many coastal and inland waterway states and international jurisdictions to the extent that the Company’s vessels transit in international waters or the Company operates in such jurisdictions.
The Company’s coastal tank barge fleet capacity of 3.0 million barrels equates to approximately 5,000 railroad tank cars or approximately 15,700 tractor-trailer tank trucks. Marine transportation generally involves less urban exposure than railroad or truck transportation and operates on a system with few crossing junctures and often in areas relatively remote from population centers.
The Company’s coastal tank barge fleet capacity of 2.9 million barrels equates to approximately 4,800 railroad tank cars or approximately 15,300 tractor-trailer tank trucks. Marine transportation generally involves less urban exposure than railroad or truck transportation and operates on a system with few crossing junctures and often in areas relatively remote from population centers.
The number of coastal tank barges that operate in the 195,000 barrels or less category is approximately 270, of which the Company operates 29 or approximately 11%. The average age of the nation’s coastal tank barge fleet is approximately 16 years.
The number of coastal tank barges that operate in the 195,000 barrels or less category is approximately 264, of which the Company operates 28 or approximately 11%. The average age of the nation’s coastal tank barge fleet is approximately 15 years.
Kirby Ocean Transport operates primarily under term contracts of affreightment. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer, sugar and other bulk cargoes on a short-term basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.
Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer, sugar and other bulk cargoes on a spot basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.
The Company also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufacturers cementing and pumping equipment as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield service and railroad customers. 4 The Company has approximately 5,200 employees, the large majority of whom are in the United States.
The Company also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufacturers cementing and pumping equipment as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield service and railroad customers.
The installation of BWMS equipment will require significant capital expenditures in accordance with the compliance schedule established by the USCG in 33 CFR 151 to complete the installation of the approved system on those existing vessels that require a system in order to comply with the BWMS regulations. Financial Responsibility Requirement.
The installation of BWMS equipment has required and continues to require significant capital expenditures in accordance with the compliance schedule established by the USCG in 33 CFR 151 to complete the installation of the approved system on those existing vessels that require a system in order to comply with the BWMS regulations.
Marine Tra nsportation Operations KMT operated a fleet of 1,037 inland tank barges and an average of 277 inland towboats during the 2022 fourth quarter, as well as 29 coastal tank barges and 27 coastal tugboats. The segment also operated four offshore dry-bulk cargo barges, four offshore tugboats and one docking tugboat transporting dry-bulk commodities in United States coastal trade.
Marine Tra nsportation Operations KMT operated a fleet of 1,076 inland tank barges and an average of 281 inland towboats during the 2023 fourth quarter, as well as 28 coastal tank barges and 25 coastal tugboats. The segment also operated four offshore dry-bulk cargo barges, four offshore tugboats and one docking tugboat transporting dry-bulk commodities in United States coastal trade.
The Company offers custom fabricated oilfield service equipment that is fully tested and field ready. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders, coil tubing, well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems.
The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders, coil tubing, well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems.
Item 1. Busi ness THE COM PANY Kirby Corporation (the “Company”) is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The Company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge.
Item 1. Busi ness THE COM PANY Kirby Corporation (the “Company”) is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts.
This evidence is in the form of a Certificate of Financial Responsibility (“COFR”) issued by the USCG. The majority of the Company’s tank barges are subject to this COFR 13 requirement, and the Company has fully complied with this requirement since its inception.
This evidence is in the form of a Certificate of Financial Responsibility (“COFR”) issued by the USCG. The majority of the Company’s tank barges are subject to this COFR 16 requirement, and the Company has fully complied with this requirement since its inception. The States of Alaska, California, and Washington have implemented state financial responsibility requirements.
During 2022, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were spot contract revenues. During 2021, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% were spot contract revenues. During 2020, approximately 85% of the coastal marine transportation revenues were under term contracts and 15% were spot contract revenues.
During 2022, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were under spot contracts. During 2023, approximately 85% of the coastal marine transportation revenues were under term contracts and 15% were under spot contracts.
As of December 31, 2022, the equipment owned or operated by KMT consisted of 1,037 inland tank barges with 23.1 million barrels of capacity, and an average of 277 inland towboats during the fourth quarter of 2022, as well as 29 coastal tank barges with 3.0 million barrels of capacity, 27 coastal tugboats, four offshore dry-bulk cargo barges, four offshore tugboats and one docking tugboat with the following specifications and capacities: Class of equipment Number in class Average age (in years) Barrel capacities Inland tank barges (owned and leased): Regular double hull: 20,000 barrels and under 356 15.4 4,154,000 Over 20,000 barrels 629 13.8 18,064,000 Specialty double hull 52 37.0 885,000 Total inland tank barges 1,037 15.5 23,103,000 Inland towboats (owned and chartered): 800 to 1300 horsepower 31 33.9 1400 to 1900 horsepower 29 24.0 2000 to 2400 horsepower 163 11.9 2500 to 3200 horsepower 40 11.4 3300 to 4800 horsepower 9 23.1 Greater than 5000 horsepower 5 23.1 Total inland towboats 277 16.3 Coastal tank barges (owned and leased): 30,000 barrels and under 2 28.1 37,000 50,000 to 70,000 barrels 3 17.3 111,000 80,000 to 90,000 barrels 9 19.1 759,000 100,000 to 110,000 barrels 6 16.5 630,000 120,000 to 150,000 barrels 3 21.0 416,000 Over 150,000 barrels 6 7.1 1,046,000 Total coastal tank barges 29 16.7 2,999,000 Coastal tugboats (owned and chartered): 2000 to 2900 horsepower 1 47.1 3000 to 3900 horsepower 2 20.0 4000 to 4900 horsepower 7 12.9 5000 to 6900 horsepower 11 6.7 Greater than 7000 horsepower 6 12.5 Total coastal tugboats 27 11.8 Deadweight Tonnage Offshore dry-bulk cargo barges (owned) 4 24.1 67,000 Offshore tugboats and docking tugboat (owned and chartered) 5 31.5 The 277 inland towboats, 27 coastal tugboats, four offshore tugboats and one docking tugboat provide the power source and the 1,037 inland tank barges, 29 coastal tank barges and four offshore dry-bulk cargo barges provide the freight capacity for KMT.
As of December 31, 2023, the equipment owned or operated by KMT consisted of 1,076 inland tank barges with 23.7 million barrels of capacity, and an average of 281 inland towboats during the fourth quarter of 2023, as well as 28 coastal tank barges with 2.9 million barrels of capacity, 25 coastal tugboats, four offshore dry-bulk cargo barges, four offshore tugboats and one docking tugboat with the following specifications and capacities: Class of equipment Number in class Average age (in years) Barrel capacities Inland tank barges (owned and leased): Regular double hull: 20,000 barrels and under 384 15.9 4,499,000 Over 20,000 barrels 637 14.6 18,301,000 Specialty double hull 55 37.6 924,000 Total inland tank barges 1,076 16.2 23,724,000 Inland towboats (owned and chartered): 800 to 1300 horsepower 29 34.7 1400 to 1900 horsepower 31 25.0 2000 to 2400 horsepower 165 12.8 2500 to 3200 horsepower 42 10.9 3300 to 4800 horsepower 9 23.4 Greater than 5000 horsepower 5 24.1 Total inland towboats 281 16.7 Coastal tank barges (owned): 30,000 barrels and under 2 29.0 37,000 50,000 to 70,000 barrels 3 18.3 111,000 80,000 to 90,000 barrels 8 19.9 677,000 100,000 to 110,000 barrels 6 17.5 630,000 120,000 to 150,000 barrels 3 22.0 416,000 Over 150,000 barrels 6 8.1 1,046,000 Total coastal tank barges 28 17.6 2,917,000 Coastal tugboats (owned and chartered): 2000 to 2900 horsepower 1 48.1 3000 to 3900 horsepower 1 21.0 4000 to 4900 horsepower 7 19.0 5000 to 6900 horsepower 10 7.8 Greater than 7000 horsepower 6 13.5 Total coastal tugboats 25 14.4 Deadweight Tonnage Offshore dry-bulk cargo barges (owned) 4 25.1 67,000 Offshore tugboats and docking tugboat (owned and chartered) 5 32.5 The 281 inland towboats, 25 coastal tugboats, four offshore tugboats and one docking tugboat provide the power source and the 1,076 inland tank barges, 28 coastal tank barges and four offshore dry-bulk cargo barges provide the freight capacity for KMT.
The following table sets forth the revenues for KDS (dollars in thousands): Year Ended December 31, 2022 % 2021 % 2020 % Service and parts $ 962,187 82 % $ 813,875 88 % $ 711,051 93 % Manufacturing 205,600 18 109,867 12 56,092 7 $ 1,167,787 100 % $ 923,742 100 % $ 767,143 100 % Commercial and Ind ustrial Operations The Company serves the marine, on-highway, power generation, and other commercial and industrial markets primarily in the United States.
The following table sets forth the revenues for KDS (dollars in thousands): Year Ended December 31, 2023 % 2022 % 2021 % Service and parts $ 1,071,297 78 % $ 962,187 82 % $ 813,875 88 % Manufacturing 298,406 22 205,600 18 109,867 12 $ 1,369,703 100 % $ 1,167,787 100 % $ 923,742 100 % Commercial and Ind ustrial Operations The Company serves the marine, on-highway, power generation, and other commercial and industrial markets primarily in the United States.
During 2021, as economic activity improved, black oil tank barge utilization averaged in the mid 70% range during the first nine months of 2021 and recovered to the high 80% range in the 2021 fourth quarter. During 2022, black oil tank barge utilization further 8 improved to the high 90% range in the 2022 fourth quarter.
During 2021, volumes recovered from the lows seen in 2020 as economic activity improved. During 2021, inland black oil tank barge utilization averaged in the mid-70% range during the first nine months of 2021 and recovered to the high 80% range in the 2021 fourth quarter.
The fleet of 277 inland towboats for the 2022 fourth quarter ranges from 800 to 6,100 horsepower. Of the 277 inland towboats, 216 are owned by the Company and 61 are chartered.
The fleet of 281 inland towboats for the 2023 fourth quarter ranges from 800 to 6,100 horsepower. Of the 281 inland towboats, 214 are owned by the Company and 67 are chartered.
Coastal tank barge utilization for the transportation of petrochemicals increased from the mid-to-high 80% range in 2019 to the low 90% range during 2022 due to a higher percentage of term contracts. The demand for black oil, including ship bunkers, varies by type of product transported.
Coastal tank barge utilization for the transportation of petrochemicals increased from the low 90% range in 2022 to the mid 90% range during 2023 due to improved economic conditions. The demand for black oil, including ship bunkers, varies by type of product transported.
A term contract is an agreement with a specific customer to transport cargo from a designated origin to a designated destination at a set rate (affreightment) or at a daily rate (time charter). The rate may or may not include escalation provisions to recover changes in specific costs such as fuel.
The Company enters into agreements with its customers to transport cargo from a designated origin to a designated destination at a set rate (affreightment) or at a daily rate (time charter). The rate may or may not include escalation provisions to recover changes in specific costs such as fuel.
During periods of high natural gas prices, the manufacturing of nitrogen-based liquid fertilizer in the United States is curtailed. During these periods, imported products, which normally involve longer barge trips, replace the domestic products to meet Midwest and South Texas demands. Such products are delivered to the numerous small terminals and distributors throughout the United States farm belt.
During these periods, imported products, which normally involve longer barge trips, replace the domestic products to meet Midwest and South Texas demands. Such products are delivered to the numerous small terminals and distributors throughout the United States farm belt.
Most of the Company’s tank barges are inspected by the USCG and carry certificates of inspection. The Company’s inland and coastal towing vessels and coastal dry-bulk barges are also subject to USCG regulations. The USCG has enacted safety regulations governing the inspection, standards, and safety management systems of towing vessels.
The agencies establish safety requirements and standards and are authorized to investigate incidents. Most of the Company’s tank barges are inspected by the USCG and carry certificates of inspection. The Company’s inland and coastal towing vessels and coastal dry-bulk barges are also subject to USCG regulations.
KDS has multiple career progressions within its numerous job groups. 18 The Company's leadership and managerial training includes an online training curriculum that is available to both supervisory employees and those employees that aspire to move into such roles in the future.
The Company's leadership and managerial training includes an online training curriculum that is available to both supervisory employees and those employees that aspire to move into such roles in the future.
Through its distribution and services segment (“KDS”), the Company sells after-market service and genuine replacement parts for engines, transmissions, reduction gears, and power generation equipment used in oil and gas and commercial and industrial applications.
The Company, through its marine transportation segment (“KMT”), transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. Through its distribution and services segment (“KDS”), the Company sells after-market service and genuine replacement parts for engines, transmissions, reduction gears, and power generation equipment used in oil and gas and commercial and industrial applications.
Generally, gasoline and No. 2 oil are exported from the Gulf Coast where refining capacity exceeds demand. The Midwest is a net importer of such products. Volumes were also driven by diesel fuel transported to terminals along the Gulf Coast for export to South America. Ethanol, produced in the Midwest, is moved from the Midwest to the Gulf Coast.
The Midwest is a net importer of such 8 products. Volumes were also driven by diesel fuel transported to terminals along the Gulf Coast for export to South America. Ethanol, produced in the Midwest, is moved from the Midwest to the Gulf Coast.
The Company does not foresee any current or future difficulty in maintaining the COFR certificates under current rules. Clean Air Regulations. The Federal Clean Air Act of 1979 (“CAA”) requires states to draft State Implementation Plans (“SIPs”) under the National Ambient Air Quality Standards designed to reduce atmospheric pollution for six common air pollutants to levels mandated by this act.
Clean Air Regulations. The Federal Clean Air Act of 1979 (“CAA”) requires states to draft State Implementation Plans (“SIPs”) under the National Ambient Air Quality Standards designed to reduce atmospheric pollution for six common air pollutants to levels mandated by this act. The EPA designates areas in the United States as meeting or not meeting the standards.
Of the 1,037 inland tank barges currently operated, 800 are petrochemical and refined petroleum products barges, 152 are black oil barges, 75 are pressure barges and 10 are refrigerated anhydrous ammonia barges. Of the 1,037 inland tank barges, 999 are owned by the Company and 38 are leased.
Of the 1,076 inland tank barges currently operated, 826 are petrochemical and refined petroleum products barges, 157 are black oil barges, 83 are pressure barges and 10 are refrigerated anhydrous ammonia barges. Of the 1,076 inland tank barges, 1,043 are owned by the Company and 33 are leased.
Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and tugboat units involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels primarily operate under long-term contracts of affreightment. Kirby Ocean Transport owns and operates a fleet of two offshore dry-bulk barges, two offshore tugboats and one docking tugboat.
Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and tugboat units involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels have typically operated under term contracts of affreightment of a year or longer.
OEM parts need to be properly tested and certified for nuclear applications. Oil an d Gas Operations The Company is engaged in the distribution and service of high-speed diesel engines, pumps and transmissions, and the manufacture and remanufacture of oilfield service equipment. The oil and gas operations represented approximately 44% of the segment’s 2022 revenues.
Specific regulations relating to equipment used in nuclear power generation require extensive testing and certification of replacement parts. OEM parts need to be properly tested and certified for nuclear applications. Oil an d Gas Operations The Company is engaged in the distribution and service of high-speed diesel engines, pumps and transmissions, and the manufacture and remanufacture of oilfield service equipment.
The regulations requiring towing vessels to obtain a certificate of inspection became effective for existing towing vessels on July 20, 2018. Other portions of the regulations were phased in following the July 20, 2018 effective date through July 19, 2022, by which time the Company was in full compliance.
Other portions of the regulations were phased in following the July 20, 2018 effective date through July 19, 2022, by which time the Company was in full compliance.
The Company believes that it is in compliance with the provisions of the regulations that have been adopted and does not believe that the adoption of any further regulations will impose additional material requirements on the Company.
Uninspected vessel operations, the Company’s shore-based personnel, and employees in the Company’s KDS segment are subject to OSHA regulations. The Company believes that it is in compliance with the provisions of the regulations that have been adopted and does not believe that the adoption of any further regulations will impose additional material requirements on the Company.
Environmental, health, and safety topics include defensive and distracted driving, first aid basic and medical emergencies, global safety principles, oil management, and hazardous substances training. Compliance topics include anti-corruption training, cybersecurity awareness, business ethics, compliance, and promoting diversity. Skill related topics include business writing, risk-based thinking, initiating and planning a project, and transitioning into a project management role.
Environmental, health, and safety topics include defensive and distracted driving, first aid basic and medical emergencies, global safety principles, oil management, and hazardous substances training. Compliance topics include anti-corruption and anti-human trafficking training, cybersecurity awareness, business ethics, compliance, and promoting diversity.
Woodruff 62 Vice President – Public and Governmental Affairs No family relationship exists among the executive officers or among the executive officers and the directors. Officers are elected to hold office until the annual meeting of directors, which immediately follows the annual meeting of stockholders, or until their respective successors are elected and have qualified. David W.
Officers are elected to hold office until the annual meeting of directors, which immediately follows the annual meeting of stockholders, or until their respective successors are elected and have qualified. David W.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Any damage or compromise of its critical assets or data security or its inability to use or access these critical assets and information systems could adversely impact the efficient and safe operation of its businesses, or result in the failure to safely operate its equipment, and maintain the confidentiality of data of its customers or its employees and could subject the Company to increased operating expenses or legal action, which could have an adverse effect on the Company.
Any damage or compromise of its critical assets or data security or its inability to use or access these critical assets and information systems could adversely impact the efficient and safe operation of its businesses, or result in the failure to safely operate its equipment, and maintain the confidentiality of data of its customers or its employees and could subject the Company to increased operating expenses 26 or legal action, which could have an adverse effect on the Company.
The Company’s operations are also affected by various United States and state regulations and legislation enacted for protection of the environment. The Company incurs significant expenses and capital 22 expenditures to comply with applicable laws and regulations and any significant new regulation or legislation, including climate change laws or regulations, could have an adverse effect on the Company.
The Company’s operations are also affected by various United States and state regulations and legislation enacted for protection of the environment. The Company incurs significant expenses and capital expenditures to comply with applicable laws and regulations and any significant new regulation or legislation, including climate change laws or regulations, could have an adverse effect on the Company.
The Company manages its exposure to losses from potential unauthorized discharges of pollutants through the use of well-maintained and equipped tank barges and towing vessels, through safety, training and environmental programs, and through the Company’s insurance 21 program, but a discharge of pollutants by the Company could have an adverse effect on the Company.
The Company manages its exposure to losses from potential unauthorized discharges of pollutants through the use of well-maintained and equipped tank barges and towing vessels, through safety, training and environmental programs, and through the Company’s insurance program, but a discharge of pollutants by the Company could have an adverse effect on the Company.
In addition, cap-and-trade proposals would likely increase the cost of energy, including purchases of diesel fuel, steam and electricity, and 26 certain raw materials used or transported by the Company. Proposed domestic and international cap-and-trade systems could materially increase raw material and operating costs of the Company’s customer base.
In addition, cap-and-trade proposals would likely increase the cost of energy, including purchases of diesel fuel, steam and electricity, and certain raw materials used or transported by the Company. Proposed domestic and international cap-and-trade systems could materially increase raw material and operating costs of the Company’s customer base.
Continuing impacts resulting from actual or threatened health epidemics, and pandemics or other major health crisis could materially and adversely affect our business, financial condition and results of operations. The Company’s business could be impacted adversely by the effects of public health epidemics, pandemics or other major heath crises (which we refer to collectively as public health crises).
Continuing impacts resulting from actual or threatened health epidemics, and pandemics or other major health crisis could materially and adversely affect the Company’s business, financial condition and results of operations. The Company’s business could be impacted adversely by the effects of public health epidemics, pandemics or other major heath crises (which we refer to collectively as public health crises).
Additionally, the pricing grids on Company’s Revolving Credit Facility and Term Loan contain a ratings grid that includes a possible increase in borrowing rates if the Company’s rating declines. Furthermore, the 27 Company incurs interest under its Revolving Credit Facility based on floating rates.
Additionally, the pricing grids on Company’s Revolving Credit Facility and Term Loan contain a ratings grid that includes a possible increase in borrowing rates if the Company’s rating declines. Furthermore, the Company incurs interest under its Revolving Credit Facility based on floating rates.
As a result of the COVID-19 pandemic and petrochemical and refinery plant shutdowns, 2020 and 2021 petrochemical and refined products volumes decreased relative to 2019. Volumes began to recover in 2021 and have continued to increase in 2022 as economic activity improved.
As a result of the COVID-19 pandemic and petrochemical and refinery plant shutdowns, 2020 and 2021 petrochemical and refined products volumes decreased relative to 2019. Volumes began to recover in 2021 and have continued to increase in 2022 and 2023 as economic activity improved.
A significant delay in the construction of new vessels or a shipyard’s inability to perform under the construction contract could negatively impact the Company’s ability to fulfill contract commitments and to realize timely revenues with respect to vessels under construction.
A significant delay in the construction of new vessels or a shipyard’s inability to perform under the construction contract could negatively impact the 23 Company’s ability to fulfill contract commitments and to realize timely revenues with respect to vessels under construction.
The requirements that the Company’s vessels be United States built and manned by United States citizens, the crewing requirements and material requirements of the USCG, and the application of United States labor and tax laws increases the cost of United States flagged vessels compared to comparable foreign flagged vessels.
The requirements that the Company’s vessels be United States built and manned by United States citizens, the crewing requirements and material requirements of the USCG, and the 21 application of United States labor and tax laws increases the cost of United States flagged vessels compared to comparable foreign flagged vessels.
Actual or threatened public health crises may have a number of adverse impacts, including volatility in the global economy, impacts to our customers’ business operations, or significant disruptions in waterborne transportation of cargoes, and supply chain activity, caused by a variety of factors such as quarantines, supplier factory and office closures, or other government-imposed restrictions, any of which could adversely impact our business, financial condition, and results of operations.
Actual or threatened public health crises may have a number of adverse impacts, including volatility in the global economy, impacts to the Company’s customers’ business operations, or significant disruptions in waterborne transportation of cargoes, and supply chain activity, caused by a variety of factors such as quarantines, supplier factory and office closures, or other government-imposed restrictions, any of which could adversely impact the Company’s business, financial condition, and results of operations.
Governments have removed, eased, reinstated, or implemented new protocols or restrictions in response to reassessment of the risk of COVID-19, based in part on, changing levels of infection and hospitalization rates.
Governments removed, eased, reinstated, or implemented new protocols or restrictions in response to reassessment of the risk of COVID-19, based in part on, changing levels of infection and hospitalization rates.
In 2020, with the acquisition of Convoy Servicing Company and Agility Fleet Services, LLC, the Company expanded its dealership network of Thermo King refrigeration systems for trucks, railroad cars, and other land transportation markets in Texas and Colorado. In 2022, sales and service of Thermo King products comprised approximately 5% of the Company’s revenues.
In 2020, with the acquisition of Convoy Servicing Company and Agility Fleet Services, LLC, the Company expanded its dealership network of Thermo King refrigeration systems for trucks, railroad cars, and other land transportation markets in Texas and Colorado. In 2023, sales and service of Thermo King products comprised approximately 5% of the Company’s revenues.
For the commercial and industrial market, the segment’s primary marine diesel competitors are independent diesel services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities. For power generation, the primary competitors are other independent service companies.
For the commercial and industrial market, the segment’s primary marine diesel competitors are independent diesel services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities.
The Company’s actual or perceived failure to report accurately or achieve its ESG-related initiatives, goals, or aspirations could negatively impact its reputation, result in ESG-focused investors not purchasing and holding Company stock, or otherwise materially harm the Company’s business. Increased prices and inflation could negatively impact the Company’s margin performance and financial results.
The Company’s actual or perceived failure to report accurately or achieve its ESG-related initiatives, goals, or aspirations could result in government enforcement action, negatively impact its reputation, result in ESG-focused investors not purchasing and holding Company stock, or otherwise materially harm the Company’s business. Increased prices and inflation could negatively impact the Company’s margin performance and financial results.
In addition, the Company and the industry added new coastal tank barge capacity during 2019, 2020, and 2021. Much of this new capacity was replacement capacity for older vessels anticipated to be retired.
In addition, the Company and the industry added new coastal tank barge capacity during 2019 through 2021. Much of this new capacity was replacement capacity for older vessels anticipated to be retired.
The cost of steel, a key material in barge construction, was relatively stable from 2010 through 2019. During 2020, at the onset of the COVID-19 pandemic, steel costs dropped, however, during 2021 and 2022, steel prices rose above 2019 levels due to supply chain disruptions.
The cost of steel, a key material in barge construction, was relatively stable from 2010 through 2019. During 2020, at the onset of the COVID-19 pandemic, steel costs dropped, however, during 2021 and 2022, steel prices rose above 2019 levels due to supply chain disruptions before decreasing in 2023.
Currently, 35% of the cost of new construction and major rehabilitation of locks and dams is paid by marine transportation companies through a 29 cent per gallon diesel fuel tax and the remaining 65% of waterway infrastructure and improvement is paid from general federal tax revenues.
Currently, 35% of the cost of new construction and major rehabilitation of locks and dams is paid by marine transportation companies through a 29 cent per gallon waterway user tax and the remaining 65% of waterway infrastructure and improvement is paid from general federal tax revenues.
Three KDS customers accounted for approximately 9% of the Company’s 2022 revenue, 6% of 2021 revenue, and 3% of 2020 revenue. Although the Company considers its relationships with these companies to be strong, the loss of any of these customers, or their inability to meet financial obligations, could have an adverse effect on the Company.
Three KDS customers accounted for approximately 12% of the Company’s 2023 revenue, 9% of 2022 revenue, and 6% of 2021 revenue. Although the Company considers its relationships with these companies to be strong, the loss of any of these customers, or their inability to meet financial obligations, could have an adverse effect on the Company.
The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions. KMT has approximately 3,115 employees, of which approximately 2,400 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements.
The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions. KMT has approximately 3,070 employees, of which approximately 2,350 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements.
While the COVID-19 pandemic has caused some crewing issues, to date, the Company has been able to manage its operations with limited vessel delays and disruption of services, including some loss of revenue and incremental costs in the Company’s inland and coastal businesses.
While the COVID-19 pandemic caused some crewing issues, the Company was able to manage its operations with limited vessel delays and disruption of services, including some loss of revenue and incremental costs in the Company’s inland and coastal businesses.
Loss of a large customer could adversely affect the Company. Five KMT customers accounted for approximately 17% of the Company’s 2022 and 2021 revenue, and 18% of 2020 revenue. The Company has contracts with these customers expiring in 2023 through 2026.
Loss of a large customer could adversely affect the Company. Five KMT customers accounted for approximately 16% of the Company’s 2023 revenue, and 17% of 2022 and 2021 revenue. The Company has contracts with these customers expiring in 2024 through 2026.
The segment’s coastal operations include approximately 432 vessel employees, of whom approximately 313 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas.
The segment’s coastal operations include approximately 413 vessel employees, of whom approximately 325 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas.
For 2022, 49% of KMT’s revenues were from the movement of petrochemicals, including the movement of raw materials and feedstocks from one refinery or petrochemical plant to another, as well as the movement of more finished products to end users and terminals for export.
For 2023, 51% of KMT’s revenues were from the movement of petrochemicals, including the movement of raw materials and feedstocks from one refinery or petrochemical plant to another, as well as the movement of more finished products to end users and terminals for export.
United and S&S are also the distributors for parts, service and warranty on Daimler truck engines and related equipment in multiple states. Sales and service of MTU, Allison, and Daimler products accounted for approximately 14% of the Company’s revenues during 2022.
United and S&S are also the distributors for parts, service and warranty on Daimler truck engines and related equipment in multiple states. Sales and service of MTU, Allison, and Daimler products accounted for approximately 13% of the Company’s revenues during 2023.
The Company estimates there are approximately 270 tank barges operating in the 195,000 barrels or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 21 of those are over 25 years old.
The Company estimates there are approximately 264 tank barges operating in the 195,000 barrels or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 20 of those are over 25 years old.
As of the end of 2022, the Company estimates that approximately 170 to 200 inland tank barges were transporting crude and natural gas condensate. Volatility in the price of natural gas and crude oil can also result in heightened uncertainty which may lead to decreased production and delays in new petrochemical and refinery plant construction.
As of the end of 2023, the Company estimates that approximately 190 to 220 inland tank barges were transporting crude and natural gas condensate. Volatility in the price of natural gas and crude oil can also result in heightened uncertainty which may lead to decreased production and delays in new petrochemical and refinery plant construction.
Many of the items essential to the Company’s business require the use of shipping services to transport them to the Company’s facilities. Shipping delays or disruptions may result in operational slowdowns, especially where materials, components, or equipment are necessary to complete a project or order for the Company’s customers, particularly in the manufacturing business of our distribution and services segment.
Many of 27 the items essential to the Company’s business require the use of shipping services to transport them to the Company’s facilities. Shipping delays or disruptions may result in operational slowdowns, especially where materials, components, or equipment are necessary to complete a project or order for the Company’s customers, particularly in the manufacturing business of KDS.
In addition, eight new United States petrochemical projects, including expansion of existing plants, were completed during 2022, with an additional six projects scheduled to be completed during 2023. These projects should provide additional movements for KMT.
In addition, eight new United States petrochemical projects, including expansion of existing plants, were completed during 2022, with an additional five projects completed during 2023 and four scheduled to be completed in 2024. These projects should provide additional movements for KMT.
In addition, the Company could be criticized for the timing, scope or nature of these initiatives, goals, or aspirations, or for any revisions to them. To the extent that the required and voluntary disclosures about ESG matters increase, the Company could be criticized for the accuracy, adequacy, or completeness of such disclosures.
In addition, the Company could be criticized for the timing, scope or nature of these initiatives, goals, or aspirations, or for any revisions to them. As mandatory and voluntary disclosures about ESG matters increase, the Company could be penalized or criticized for the accuracy, adequacy, or completeness of such disclosures.
Increased competition for available black oil and petrochemical barge moves caused by reduced crude oil and natural gas condensate production could have an adverse impact on KMT including as a result of lower spot and term contract rates and/or reluctance to enter into or extend term contracts.
Increased competition for 22 available black oil and petrochemical barge moves caused by reduced crude oil and natural gas condensate production could have an adverse impact on KMT including as a result of lower spot and term contract rates and/or reluctance to enter into or extend term contracts. KMT could be adversely impacted by the construction of tank barges.
The Company estimates that approximately 5 to 10 new tank barges have currently been ordered for delivery in 2023 and expects a number of older tank barges will be retired, dependent on 2023 market conditions.
The Company estimates that approximately 25 to 30 new tank barges have currently been ordered for delivery in 2024 and expects a number of older tank barges will be retired, dependent on 2024 market conditions.
These increases in steel costs and alterations in supply and demand dynamics, as well as higher labor costs, resulted in construction prices for a new 30,000 barrel tank barge increasing compared to prices in 2017 when there was an industry-wide over-capacity of inland tank barges in the market.
Although steel prices decreased in 2023, they still remain near historical highs. These increases in steel costs and alterations in supply and demand dynamics, as well as higher labor costs, resulted in construction prices for a new 30,000 barrel tank barge increasing compared to prices in 2017 when there was an industry-wide over-capacity of inland tank barges in the market.
As of the end of 2020, the Company estimates that approximately 100 to 150 inland tank barges and one coastal tank barge were transporting crude and natural gas condensate and at the end of 2021, approximately 160 to 170 inland tank barges and one coastal tank barge were transporting crude and natural gas condensate.
As of the end of 2021, approximately 160 to 170 inland tank barges and one coastal tank barge were transporting crude and natural gas condensate. As of the end of 2022, the Company estimates that approximately 170 to 200 inland tank barges were transporting crude and natural gas condensate.
The cost of fuel during 2022 was approximately 16% of marine transportation revenue. The Company’s marine transportation term contracts typically include fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 120 day delay before contracts are adjusted depending on the specific contract.
The Company’s marine transportation term contracts typically include fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 120 day delay before contracts are adjusted depending on the specific contract.
Sales and service of EMD products account for approximately 3% of the Company’s revenues for 2022. Although the Company considers its relationship with EMD to be strong, the loss of the EMD distributorship and service rights, or a disruption of the supply of EMD parts, could have a negative impact on the Company’s ability to service its customers.
Although the Company considers its relationship with EMD to be strong, the loss of the EMD distributorship and service rights, or a disruption of the supply of EMD parts, could have a negative impact on the Company’s ability to service its customers.
Significant cost overruns or delays for vessels under construction could also adversely affect the Company’s financial condition, results of operations and cash flows. To date, the Company has not experienced significant shipyard delays associated with the COVID-19 pandemic, including at its subsidiary, San Jac. The Company is subject to competition in KMT.
Significant cost overruns or delays for vessels under construction could also adversely affect the Company’s financial condition, results of operations and cash flows. The Company did not experience significant shipyard delays associated with the COVID-19 pandemic, including at its subsidiary, San Jac.
In addition to its relationships with MTU, Allison, and Daimler, the Company also has relationships with many other distributors and parts suppliers and the loss of a distributorship and service rights, or a disruption of the supply of parts from any of these other distributors or part suppliers could also have a negative impact on the Company’s ability to service its customers. 25 General Corporate Risk Factors The Company is subject to adverse weather conditions in KMT and KDS.
In addition to its relationships with MTU, Allison, and Daimler, the Company also has relationships with many other distributors and parts suppliers and the loss of a distributorship and service rights, or a disruption of the supply of parts from any of these other distributors or part suppliers could also have a negative impact on the Company’s ability to service its customers.
The Company is aware of 23 one coastal ATB placed in service in 2020, one small specialized coastal ATB in 2021 and no ATBs placed in 2022 by competitors with no further coastal tank barges currently under construction. Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability.
The Company is aware of one small specialized coastal ATB placed in service in 2021 and no ATBs placed in service in 2022 or 2023 with no further ATBs currently under construction. Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability. The cost of fuel during 2023 was approximately 12% of marine transportation revenue.
For 2021, the Company estimated that industry-wide 70 new tank barges were placed in service, of which none were by the Company, and 90 tank barges were retired, 36 of which were by the Company. For 2022, the Company estimates that industry-wide 22 new tank barges were placed in service and retirements, net of reactivations, were flat.
For 2022, the Company estimates that industry-wide 22 new tank barges were placed in service and retirements, net of reactivations, were flat. For 2023, the Company estimates that industry-wide 27 new tank barges were placed in service and 48 tank barges were retired.
The standards for tracking and reporting on ESG matters are relatively new, have not been harmonized and continue to evolve. The Company’s selection of disclosure frameworks that seek to align with various voluntary reporting standards may change from time to time and may result in a lack of comparative data from period to period.
The Company’s selection of disclosure frameworks that seek to align with various reporting standards may change from time to time and may result in a lack of comparative data from period to period.
Federal or state legislation, executive or governmental orders, and/or regulations could materially impact customers’ operations and greatly reduce or eliminate demand for the Company’s pressure pumping fracturing equipment and related products.
Federal or state legislation, executive or governmental orders, and/or regulations could materially impact customers’ operations and greatly reduce or eliminate demand for the Company’s pressure pumping fracturing equipment and related products. The Company is unable to predict whether future legislation or any other regulations will ultimately be enacted and, if so, the impact on KDS.
In addition, agreements governing the Company’s indebtedness from time to time may impose certain limitations on the Company’s ability to undertake acquisitions or make investments or may limit the Company’s ability to incur certain indebtedness and liens, which could limit the Company’s ability to make acquisitions.
In addition, agreements governing the Company’s indebtedness from time to time may impose certain limitations on the Company’s ability to undertake acquisitions or make investments or may limit the Company’s ability to incur certain indebtedness and liens, which could limit the Company’s ability to make acquisitions. 25 The Company’s failure to comply with the FCPA, or similar local applicable anti-bribery laws, could have a negative impact on its ongoing operations .
The degree to which any future disease outbreaks or public health threats may impact the Company’s revenues, results of operations and 28 financial condition is uncertain and will depend on future developments.
The degree to which any future disease outbreaks or public health threats may impact the Company’s revenues, results of operations and financial condition is uncertain and will depend on future developments. The impact of epidemics or COVID-19 and other pandemics may also exacerbate other risks discussed above, any of which could have a material effect on the Company. Item 1B.
Extreme weather conditions may increase the Company’s costs or cause damage to its facilities, and any damage resulting from extreme weather may not be fully insured. Many of the Company’s facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt the Company’s operations or adversely impact its facilities.
Many of the Company’s facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt the Company’s operations or adversely impact its facilities.
KMT is subject to weather condition volatility. Physical impacts of climate change could have a material adverse effect on the Company's costs and operations. There has been public discussion that climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought, and snow or ice storms.
There has been public discussion that climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought, and snow or ice storms. Extreme weather conditions may increase the Company’s costs or cause damage to its facilities, and any damage resulting from extreme weather may not be fully insured.
With the acquisition of S&S in September 2017, the Company added additional EMD exclusive distributorship rights in key states, primarily through the Central, South and Eastern areas of the United States. With the S&S acquisition, the Company became the United States distributor for EMD marine and power generation applications.
The Company, through Kirby Engine Systems, serves as an EMD distributor for select markets and locations for both service and parts. With the acquisition of S&S in September 2017, the Company added additional EMD distributorship rights in key states, primarily through the Central and South areas of the United States.
Loss of a distributorship or other significant business relationship or disruptions of supply could adversely affect KDS. KDS has had a relationship with EMD, the largest manufacturer of medium-speed diesel engines, for 57 years. The Company, through Kirby Engine Systems, serves as both an EMD distributor and service center for select markets and locations for both service and parts.
For power generation, the primary competitors are other independent service companies. 24 Loss of a distributorship or other significant business relationship or disruptions of supply could adversely affect KDS. KDS has had a relationship with EMD, the largest manufacturer of medium-speed diesel engines, since the 1960s.
KMT could be adversely impacted by the construction of tank barges by its competitors. At the present time, there are an estimated 4,028 inland tank barges in the United States, of which the Company operates 1,037, or 26%.
At the present time, there are an estimated 4,007 inland tank barges in the United States, of which the Company operates 1,076, or 27%. For 2021, the Company estimated that industry-wide 70 new tank barges were placed in service, and 90 tank barges were retired.
The Company’s failure to comply with the Foreign Corrupt Practices Act (“FCPA”), or similar local applicable anti-bribery laws, could have a negative impact on its ongoing operations . The Company’s operations outside the United States require the Company to comply with both United States and international regulations.
The Company’s operations outside the United States require the Company to comply with both United States and international regulations.
The Company is unable to predict whether future legislation or any other regulations will ultimately be enacted and, if so, the impact on KDS. 24 KDS could be adversely impacted by the construction of pressure pumping units by its competitors.
KDS could be adversely impacted by the construction of pressure pumping units by its competitors.
Removed
The Company continues to update its protocols relating to management of COVID-19 variants and provide related employee education as new information and guidance becomes available. KMT is subject to the Jones Act.
Added
The Company expects that it would be able to similarly manage its operations in the future were an event of similar impact to occur again, but there is no guarantee that it would be able to do so. KMT is subject to the Jones Act.
Removed
For 2020, the Company estimated that industry-wide approximately 150 new tank barges were placed in service, six of which were purchased by the Company from another operator, and approximately 150 tank barges were retired, 95 of which were by the Company.
Added
The Company expects that its shipyard vendors, including San Jac, should be able to similarly manage their operations if an event of a similar impact were to occur in the future, but there is no guarantee that the vendors would be able to do so. The Company is subject to competition in KMT.
Removed
The impact of the COVID-19 pandemic or other epidemics or pandemics may also exacerbate other risks discussed above, any of which could have a material effect on the Company. Item 1B. Unresolved S taff Comments Not applicable.
Added
Horsepower demand remained flat in 2023 with an estimated 15 million horsepower of pressure pumping units working in North America at the end of 2023, with an estimated 4 million horsepower idled and in need of major repair.
Added
With the S&S acquisition, the Company became the United States distributor for EMD marine and power generation applications. Sales and service of EMD products account for approximately 3% of the Company’s revenues for 2023.
Added
General Corporate Risk Factors The Company is subject to adverse weather conditions in KMT and KDS. KMT is subject to weather condition volatility. Physical impacts of climate change could have a material adverse effect on the Company's costs and operations.
Added
The standards for tracking and reporting on ESG matters are relatively new, have not been harmonized and continue to evolve. Further, the statutory and regulatory requirements continue to evolve as well.
Added
In 2023, the State of California enacted climate related legislation and the SEC is expected to issue its own climate disclosure rules in 2024, both of which will or are expected to impose additional reporting requirements on the Company resulting in additional compliance cost and expense.

Item 2. Properties

Properties — owned and leased real estate

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Item 2. Propertie s The information appearing in Item 1 under “Marine Transportation– Properties” and “Distribution and Services– Properties” is incorporated herein by reference. The Company believes that its facilities are adequate for its needs and additional facilities would be available if required.
Item 2. Propertie s The principal offices of the Company are located in Houston, Texas. The Company believes that its facilities are adequate for its needs and additional facilities would be available if required.
Added
The Company’s significant operating facilities include the following locations: Location Building(s) Size (Approximate Square Feet) Owned or Leased Activity KMT Baton Rouge, Louisiana 19,300 Leased Operations and fleeting Channelview, Texas 108,300 Owned Operations, fleeting, shipyard, training and cleaning Corpus Christi, Texas 3,600 Leased Operations Freeport, Texas 6,500 Leased Fueling and fleeting Houston, Texas 73,000 Owned KMT, KDS and Corporate Headquarters Lake Charles, Louisiana 500 Leased Fleeting Miami, Florida 8,500 Leased Operations and dockage Port Arthur, Texas 1,000 Leased Fleeting Seattle, Washington 10,200 Leased Operations and inventory Staten Island, New York 7,800 Leased Operations, inventory and dockage Westwego, Louisiana 15,300 Owned Operations KDS Albany, New York 40,000 Leased Service and repairs Austin, Texas 1,500 Leased Service and repairs Baton Rouge, Louisiana 23,500 Leased Service and repairs Belle Chasse, Louisiana 34,700 Owned Service and repairs Chesapeake, Virginia 30,000 Leased Service and repairs Commerce City, Colorado 151,600 Owned Service and repairs Corpus Christi, Texas 44,100 Owned Service and repairs Dallas, Texas 211,100 Owned Service and repairs El Paso, Texas 9,000 Leased Service and repairs Fort Lauderdale, Florida 40,400 Leased Service and repairs Fort Myers, Florida 9,900 Owned Service and repairs Fort Pierce, Florida 10,300 Owned Service and repairs Fort Worth, Texas 22,600 Owned Service and repairs Houma, Louisiana 109,700 Owned Service and repairs Houston, Texas 491,100 Owned Manufacturing, service and repairs Jacksonville, Florida 44,800 Leased Service and repairs Laredo, Texas 7,000 Leased Service and repairs Little Rock, Arkansas 21,500 Owned Service and repairs Lodi, New Jersey 57,300 Leased Service and repairs Longview, Texas 50,000 Owned Service and repairs Lubbock, Texas 27,500 Owned Service and repairs Marlborough, Massachusetts 45,700 Leased Service and repairs Miami, Florida 54,400 Leased Service and repairs Middletown, Connecticut 38,800 Leased Service and repairs Mobile, Alabama 27,000 Owned Service and repairs Mount Pleasant, Texas 3,100 Leased Service and repairs New Iberia, Louisiana 33,000 Owned Service and repairs Ocala, Florida 15,200 Owned Service and repairs Odessa, Texas 49,500 Owned Service and repairs Oklahoma City, Oklahoma 446,400 Owned/Leased Manufacturing, service and repairs Orlando, Florida 44,600 Leased Service and repairs Paducah, Kentucky 73,700 Owned/Leased Service and repairs Panama City, Florida 10,200 Owned Service and repairs Pharr, Texas 59,300 Leased Service and repairs Piscataway, New Jersey 39,900 Leased Service and repairs Rocky Mount, North Carolina 50,000 Leased Service and repairs San Antonio, Texas 42,100 Owned Service and repairs Seattle, Washington 19,500 Leased Service and repairs Shreveport, Louisiana 50,000 Owned Service and repairs Tampa, Florida 50,900 Owned Service and repairs Thorofare, New Jersey 24,200 Leased Service and repairs Tulsa, Oklahoma 37,600 Leased Service and repairs West Palm Beach, Florida 7,000 Leased Service and repairs Wichita Falls, Texas 11,500 Leased Service and repairs 30

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Information for this item relating to equity compensation plans is incorporated by reference to the definitive proxy statement to be filed by the Company with the Commission pursuant to Regulation 14A within 120 days of the close of the fiscal year ended December 31, 2022. See also Note 8, Stock Award Plans to the Company’s financial statements for additional information.
Information for this item relating to equity compensation plans is incorporated by reference to the definitive proxy statement to be filed by the Company with the Commission pursuant to Regulation 14A within 120 days of the close of the fiscal year ended December 31, 2023. See also Note 8, Stock Award Plans to the Company’s financial statements for additional information.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securi ties The Company’s common stock is traded on the New York Stock Exchange under the symbol KEX. Additional market information for this item is incorporated by refence to the annual report to be provided to the Company’s stockholders pursuant to Rule 14a-3(b).
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securi ties The Company’s common stock is traded on the New York Stock Exchange under the symbol KEX. Additional market information for this item is incorporated by reference to the annual report to be provided to the Company’s stockholders pursuant to Rule 14a-3(b).
As of February 17, 2023, the Company had 60,015,000 outstanding shares held by approximately 410 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.
As of February 16, 2024, the Company had 58,522,000 outstanding shares held by approximately 370 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.
The Company’s credit agreements contain covenants restricting the payment of dividends by the Company at any time when there is a default under the agreements. Item 6. R eserved 29
The Company’s credit agreements contain covenants restricting the payment of dividends by the Company at any time when there is a default under the agreements. The following table is a summary of purchases of the Company's common stock during the 2023 fourth quarter.
Added
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares that May Yet be Purchased Under the Plans October 1 — October 31, 2023 131,603 $ 81.16 — — November 1 — November 30, 2023 294,843 $ 76.46 — — December 1 — December 31, 2023 246,833 $ 75.63 — — Total 673,279 $ 77.08 — — Purchases of the Company's common stock during the 2023 fourth quarter were made in the open market pursuant to a discretionary authorization by the Board of Directors.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other pandemics, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other pandemics, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
Accounting Standards For a discussion of recently issued accounting standards, see Note 1, Summary of Significant Accounting Policies. Ite m 7A. Quantitative and Qualitative Disclosures about Market Risk The Company is exposed to risk from changes in interest rates on certain of its outstanding debt.
Accounting Standards For a discussion of recently issued accounting standards, see Note 1, Summary of Significant Accounting Policies. 46 Ite m 7A. Quantitative and Qualitative Disclosures about Market Risk The Company is exposed to risk from changes in interest rates on certain of its outstanding debt.
The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed.
The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine 36 inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed.
Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result. 34 Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill.
Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result. Goodwill. The excess of the purchase price over the fair value of identifiable net assets acquired in transactions accounted for as a purchase is included in goodwill.
Generally, variability in demand or anticipated demand, as tank barges are added to or removed from the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, the Company charters in or releases chartered towboats in an effort to balance horsepower needs with current requirements.
Generally, variability in demand or anticipated demand, as tank barges are added to or removed from the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, the Company charters in or releases chartered towboats in an 39 effort to balance horsepower needs with current requirements.
The assessment of the recoverability of goodwill will be impacted if estimated future operating cash flows are not achieved. There are many assumptions and estimates underlying the determination of an impairment event or loss, if any. Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result. Accrued Insurance.
The assessment of the recoverability of goodwill will be impacted if estimated future operating cash flows are not achieved. There are many assumptions and estimates underlying the determination of an impairment event or loss, if any. Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result.
The Company expects to continue to be able to fund expenditures for acquisitions, capital construction projects, common stock repurchases, repayment of borrowings, and for other operating requirements both in the short term and in the long term from a combination of available cash and cash equivalents, funds generated from operating activities, and available financing arrangements.
The Company expects to continue to be able to fund expenditures for acquisitions, capital construction projects, common stock purchases, repayment of borrowings, and for other operating requirements both in the short term and in the long term from a combination of available cash and cash equivalents, funds generated from operating activities, and available financing arrangements.
During 2022, the Company transported crude oil and natural gas condensate produced from the Permian Basin and the Eagle Ford shale formation in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment.
During 2023, the Company transported crude oil and natural gas condensate produced from the Permian Basin and the Eagle Ford shale formation in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment.
The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. No pension contributions to that plan were made in 2022, 2021 or 2020.
The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. No pension contributions to that plan were made in 2023, 2022 or 2021.
On March 27, 2018, the Company amended the Higman Pension Plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions to the Higman Pension Plan of $0.9 million, $0.5 million and $2.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.
On March 27, 2018, the Company amended the Higman Pension Plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions to the Higman Pension Plan of $8.2 million, $0.9 million and $0.5 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for management's discussion and analysis of financial condition and results of operations for 2021 compared to 2020.
Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for management's discussion and analysis of financial condition and results of operations for 2022 compared to 2021.
Property is recorded at cost; improvements and betterments are capitalized as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of the individual assets.
Property, Maintenance and Repairs. Property is recorded at cost; improvements and betterments are capitalized as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of the individual assets.
Although the manufacturing business was heavily impacted by supply chain delays, the business continues to experience increased orders and deliveries of new environmentally friendly pressure pumping equipment and power generation equipment for electric fracturing. For 2022 and 2021, the oil and gas market contributed 44% and 37%, respectively, of the distribution and services revenues.
Although the manufacturing business was heavily impacted by supply chain delays, the business continues to experience increased orders and deliveries of new environmentally friendly pressure pumping equipment and power generation equipment for electric fracturing. For 2023 and 2022, the oil and gas market contributed 41% and 44%, respectively, of the distribution and services revenues.
Distribution and Services Costs and Expenses Total costs and expenses for 2022 increased 23% compared to 2021 reflecting higher costs of sales and operating expenses as a result of inflationary cost pressures and higher demand in the marine and on-highway businesses in commercial and industrial markets, as well as increased demand in the oil and gas market due to higher oilfield activity levels.
Distribution and Services Costs and Expenses Total costs and expenses for 2023 increased 14% compared to 2022 reflecting higher costs of sales and operating expenses as a result of inflationary cost pressures and higher demand in the marine and on-highway businesses in commercial and industrial markets, as well as increased demand in the oil and gas market due to higher oilfield activity levels.
Although the manufacturing business was heavily impacted by supply chain delays, the business continued to experience increased orders and deliveries of new environmentally friendly pressure pumping equipment and power generation equipment for electric fracturing. For 2022 and 2021, the oil and gas market contributed 44% and 37%, respectively, of KDS revenues.
Although the manufacturing business was heavily impacted by supply chain delays, the business continued to experience increased orders and deliveries of new environmentally friendly pressure pumping equipment and power generation equipment for electric fracturing. For 2023 and 2022, the oil and gas market contributed 41% and 44%, respectively, of KDS revenues.
For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings (loss) per share.” The weighted average number of common shares outstanding applicable to diluted earnings (loss) per share for 2022, 2021, and 2020 were 60,329,000, 60,053,000, and 59,912,000, respectively.
For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings (loss) per share.” The weighted average number of common shares outstanding applicable to diluted earnings (loss) per share for 2023, 2022, and 2021 were 59,857,000, 60,329,000, and 60,053,000, respectively.
Financial Statements and Supplementary Data The response to this item is submitted as a separate section of this report (see Item 15, page 77 and pages 47 to 76 of this report). I tem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 45
Financial Statements and Supplementary Data The response to this item is submitted as a separate section of this report (see Item 15, page 78 and pages 49 to 77 of this report). I tem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 47
The Company estimates that every 0.1% decrease in the discount rate results in an increase in the accumulated benefit obligation (“ABO”) of approximately $3.7 million. The Company assumed that plan assets would generate a long-term rate of return of 6.75% in both 2022 and 2021.
The Company estimates that every 0.1% decrease in the discount rate results in an increase in the accumulated benefit obligation (“ABO”) of approximately $4.3 million. The Company assumed that plan assets would generate a long-term rate of return of 6.75% in both 2023 and 2022.
The Company’s debt outstanding as of December 31, 2022 and December 31, 2021 is detailed in Long-Term Financing below.
The Company’s debt outstanding as of December 31, 2023 and December 31, 2022 is detailed in Long-Term Financing below.
For 2022 and 2021, the commercial and industrial market contributed 56% and 63%, respectively, of the distribution and services revenues. In the oil and gas market, revenues improved compared to 2021 due to higher oilfield activity which resulted in increased demand for new transmissions and parts in the distribution business.
For 2023 and 2022, the commercial and industrial market contributed 59% and 56%, respectively, of the distribution and services revenues. In the oil and gas market, revenues improved compared to 2022 due to higher oilfield activity which resulted in increased demand for new transmissions and parts in the distribution business.
Effective January 1, 2022, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 5%, excluding fuel. The 2022 marine transportation operating margin was 8.4% compared to 4.8% for 2021.
Effective January 1, 2023, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 9%, excluding fuel. The 2023 marine transportation operating margin was 13.9% compared to 8.4% for 2022.
Overall inland tank barge utilization levels improved in 2022 as compared to 2021, ranging from the mid-80% range during the 2022 first quarter, the low-90% range during the 2022 second and third quarters and the 90% range in the 2022 fourth quarter.
Overall inland tank barge utilization levels improved in 2023 as compared to 2022, ranging from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
For 2022, 58% of the Company’s revenues were generated by KMT. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States.
For 2023, 56% of the Company’s revenues were generated by KMT. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States.
The aggregate fair value of plan assets of the Company’s pension plans was $341.1 million and $430.8 million at December 31, 2022, and December 31, 2021, respectively. The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income).
The aggregate fair value of plan assets of the Company’s pension plans was $375.9 million and $341.1 million at December 31, 2023, and 2022, respectively. The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income).
In the fourth quarter of 2022, the Company repaid $80.0 million under the 2027 Term Loan prior to scheduled maturities. As a result, no repayments are required until June 30, 2025. Outstanding letters of credit under the 2027 Revolving Credit Facility were $5.1 million and available borrowing capacity was $494.9 million as of December 31, 2022.
In the fourth quarter of 2022, the Company repaid $80.0 million under the 2027 Term Loan prior to scheduled maturities. As a result, no repayments are required until June 30, 2025. Outstanding letters of credit under the 2027 Revolving Credit Facility were $6,000 and available borrowing capacity was $456.0 million as of December 31, 2023.
Overall inland tank barge utilization levels improved in 2022 compared to 2021, ranging from the mid-80% range during the 2022 first quarter, the low-90% range during the 2022 second and third quarters and the 90% range in the 2022 fourth quarter.
Overall inland tank barge utilization levels improved in 2023 as compared to 2022, ranging from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
A 1% increase in variable interest rates would impact the 2022 interest expense by $1.7 million based on balances outstanding at December 31, 2022, and would change the fair value of the Company’s debt by approximately 1%. Ite m 8.
A 1% increase in variable interest rates would impact the 2023 interest expense by $2.1 million based on balances outstanding at December 31, 2023, and would change the fair value of the Company’s debt by approximately 4.0%. Ite m 8.
The 2027 Term Loan in the amount of $250 million is subject to quarterly installments, beginning June 30, 2025, in increasing percentages of the 44 original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable on July 29, 2027, assuming no prepayments.
The 2027 Term Loan in the amount of $250 million is subject to quarterly installments, beginning June 30, 2025, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable on July 29, 2027, assuming no prepayments. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
Consequently, the Company’s marine transportation business is directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base. KMT’s revenues for 2022 increased 22% compared to 2021 and operating income increased 116%, compared to 2021.
Consequently, the Company’s marine transportation business is directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base. KMT’s revenues for 2023 increased 6% compared to 2022 and operating income increased 75%, compared to 2022.
Effective January 1, 2022, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 5%, excluding fuel. Marine Transportation Costs and Expenses Total costs and expenses for 2022 increased 18% compared to 2021.
Effective January 1, 2023, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 9%, excluding fuel. Marine Transportation Costs and Expenses Total costs and expenses for 2023 were flat compared to 2022.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. Inland operations consumed 48.4 million gallons of diesel fuel in 2022 compared to 46.8 million gallons consumed during 2021. The average price per gallon of diesel fuel consumed during 2022 was $3.70 per gallon compared to $2.13 per gallon for 2021.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. Inland operations consumed 48.1 million gallons of diesel fuel in 2023 compared to 48.4 million gallons consumed during 2022. The average price per gallon of diesel fuel consumed during 2023 was $3.08 per gallon compared to $3.70 per gallon for 2022.
Cash Flow and Capital Expenditures The Company generated net cash provided by operating activities of $294.1 million, $321.6 million, and $444.9 million for the years ended December 31, 2022, 2021, and 2020, respectively.
Cash Flow and Capital Expenditures The Company generated net cash provided by operating activities of $540.2 million, $294.1 million, and $321.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.
The Company has applied for and been awarded grants from various government entities totaling approximately $3.5 million related to certain emission reduction projects which it expects to receive reimbursements for in 2023.
The Company received grants from various government entities totaling approximately $3.7 million in 2023 related to certain emission reduction projects and has applied for and been awarded grants totaling approximately $4 million which it expects to receive reimbursements for in late 2024 and 2025.
The Company also used $3.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
The Company also used $37.5 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
Other long-term liabilities as of December 31, 2022 decreased 67% compared to December 31, 2021, primarily due to a decrease in pension liabilities and amortization of intangible liabilities.
Other long-term liabilities as of December 31, 2023 decreased 32% compared to December 31, 2022, primarily due to a decrease in pension liabilities due to pension contributions and amortization of intangible liabilities.
During 2022, 2021, and 2020, the Company generated cash of $36.9 million, $51.3 million, and $17.3 million, respectively, from proceeds from the disposition of assets, and $3.9 million, $0.6 million, and $0.4 million, respectively, from proceeds from the exercise of stock options.
During 2023, 2022, and 2021, the Company generated cash of $26.1 million, $36.9 million, and $51.3 million, respectively, from proceeds from the disposition of assets, and $4.2 million, $3.9 million, and $0.6 million, respectively, from proceeds from the exercise of stock options.
The 2022 fourth quarter also included $0.9 million before taxes, $0.6 million after taxes, or $0.01 per share of professional fees related to the Company’s strategic alternatives review. The 2022 second quarter included $1.5 million before taxes, $1.3 million after taxes, or $0.02 per share of severance expense.
The 2022 fourth quarter included $3.3 million before taxes, $2.4 million after taxes, or $0.04 per share of severance expense. The 2022 fourth quarter also included $0.9 million before taxes, $0.6 million after taxes, or $0.01 per share of professional fees related to the Company’s strategic alternatives review.
Marine Transportation The following table summarizes the Company’s marine transportation fleet: December 31, 2022 2021 Inland tank barges: Owned 999 983 Leased 38 42 Total 1,037 1,025 Barrel capacity (in millions) 23.1 22.9 Active inland towboats (quarter average): Owned 216 211 Chartered 61 44 Total 277 255 Coastal tank barges: Owned 28 30 Leased 1 1 Total 29 31 Barrel capacity (in millions) 3.0 3.1 Coastal tugboats: Owned 24 26 Chartered 3 3 Total 27 29 Offshore dry-bulk cargo barges (owned) 4 4 Offshore tugboats and docking tugboat (owned and chartered) 5 5 The Company also owns shifting operations and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel and in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and a shipyard for building towboats and performing routine maintenance near the Houston Ship Channel, as well as a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge.
Marine Transportation The following table summarizes the Company’s marine transportation fleet: December 31, 2023 2022 Inland tank barges: Owned 1,043 999 Leased 33 38 Total 1,076 1,037 Barrel capacity (in millions) 23.7 23.1 Active inland towboats (quarter average): Owned 214 216 Chartered 67 61 Total 281 277 Coastal tank barges: Owned 28 28 Leased — 1 Total 28 29 Barrel capacity (in millions) 2.9 3.0 Coastal tugboats: Owned 24 24 Chartered 1 3 Total 25 27 Offshore dry-bulk cargo barges (owned) 4 4 Offshore tugboats and docking tugboat (owned and chartered) 5 5 The Company also owns shifting operations and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel and in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and its San Jac shipyard for building towboats and performing routine maintenance near the Houston Ship Channel, as well as a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2022 compared to contracts renewed during the corresponding quarter of 2021: 37 Three Months Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Inland market: Term increase 7% – 9% 14% – 16% 13% – 15% 10% – 15% Spot increase 15% – 20% 15% – 18% 23% – 27% 20% – 25% Coastal market (a): Term increase 4% – 6% 10% – 12% 19% – 21% 10% – 12% Spot increase 4% – 6% 10% – 12% 18% – 22% 15% – 20% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2023 compared to contracts renewed during the corresponding quarter of 2022: Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Inland market: Term increase 10% – 12% 10% – 12% 7% – 9% 7% – 9% Spot increase 23% – 26% 26% – 29% 14% – 16% 15% – 18% Coastal market (a): Term increase 10% – 12% 16% – 18% 10% – 12% 20% – 22% Spot increase 20% – 23% 25% – 28% 31% – 33% 34% – 36% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The Company believes that long-term asset allocation, on average, will approximate the targeted allocation. 42 Long-Term Financing The following table summarizes the Company’s outstanding debt (in thousands): December 31, 2022 2021 Long-term debt, including current portion: Revolving Credit Facility due July 29, 2027 (a) $ — $ — Term Loan due July 29, 2027 (a) 170,000 — Term Loan due March 27, 2024 (b) — 315,000 3.29% senior notes due February 27, 2023 350,000 350,000 4.2% senior notes due March 1, 2028 500,000 500,000 3.46% senior notes due January 19, 2033 60,000 — Credit line due June 30, 2024 — — Bank notes payable 3,292 1,934 1,083,292 1,166,934 Unamortized debt discount and issuance costs (c) (3,674 ) (3,567 ) $ 1,079,618 $ 1,163,367 (a) Variable interest rate of 5.8% at December 31, 2022.
The Company believes that long-term asset allocation, on average, will approximate the targeted allocation. 43 Long-Term Financing The following table summarizes the Company’s outstanding debt (in thousands): December 31, 2023 2022 Long-term debt, including current portion: Revolving Credit Facility due July 29, 2027 (a) $ 44,000 $ — Term Loan due July 29, 2027 (a) 170,000 170,000 3.29% senior notes due February 27, 2023 — 350,000 4.2% senior notes due March 1, 2028 500,000 500,000 3.46% senior notes due January 19, 2033 60,000 60,000 3.51% senior notes due January 19, 2033 240,000 — Credit line due June 30, 2024 — — Bank notes payable 8,068 3,292 1,022,068 1,083,292 Unamortized debt discount and issuance costs (b) (5,473 ) (3,674 ) $ 1,016,595 $ 1,079,618 (a) Variable interest rate of 6.8% and 5.8% at December 31, 2023 and 2022, respectively.
Delay days for 2022 and 2021 were impacted by hurricanes and tropical storms, poor operating conditions due to heavy wind and fog along the Gulf Coast, water conditions on the Mississippi River System, and closures of key waterways, including the Gulf Intracoastal Waterway, due in part to lock maintenance projects.
Delay days for 2023 and 2022 were impacted by hurricanes and tropical storms, poor operating conditions due to heavy wind and fog along the Gulf Coast, low and high water conditions on the Mississippi River System, and various lock closures along the Gulf Intracoastal Waterway, due in part to lock maintenance projects.
Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 58% of the inland revenues under term contracts during both 2022 and 2021. During 2022 and 2021, approximately 75% and 80%, respectively, of coastal revenues were under term contracts and 25% and 20%, respectively, were spot contract revenues.
Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 63% of the inland revenues under term contracts during 2023 and 58% during 2022. During 2023 and 2022, approximately 85% and 75%, respectively, of coastal revenues were under term contracts and 15% and 25%, respectively, were under spot contracts.
Spot contract rates include the cost of fuel and are subject to market volatility. In KDS, the cost of major components for large manufacturing orders is secured with suppliers at the time a customer order is finalized, which limits exposure to inflation. The repair portion of KDS is based on prevailing current market rates.
In KDS, the cost of major components for large manufacturing orders is secured with suppliers at the time a customer order is finalized, which somewhat limits exposure to inflation. The repair portion of KDS is based on prevailing current market rates.
The aggregate notional value of these instruments is $19.3 million at December 31, 2022, including $12.2 million in letters of credit and $7.1 million in performance bonds. All of these instruments have an expiration date within two years.
The aggregate notional value of these instruments is $26.7 million at December 31, 2023, including $12.1 million in letters of credit and $14.6 million in performance bonds. All of these instruments have an expiration date within two years.
Results of Operations The following table sets forth the Company’s marine transportation and distribution and services revenues and the percentage of each to total revenues for the comparable periods (dollars in thousands): Year Ended December 31, 2022 % 2021 % 2020 % Marine transportation $ 1,616,967 58 % $ 1,322,918 59 % $ 1,404,265 65 % Distribution and services 1,167,787 42 923,742 41 767,143 35 $ 2,784,754 100 % $ 2,246,660 100 % $ 2,171,408 100 % 35 Marine Transportation The following table sets forth a year over year comparison of KMT’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2022 2021 % Change 2020 % Change Marine transportation revenues $ 1,616,967 $ 1,322,918 22 % $ 1,404,265 (6 )% Costs and expenses: Costs of sales and operating expenses 1,146,657 924,380 24 907,119 2 Selling, general and administrative 128,340 119,017 8 111,182 7 Taxes, other than on income 28,235 30,527 (8 ) 35,528 (14 ) Depreciation and amortization 177,551 185,979 (5 ) 186,798 — 1,480,783 1,259,903 18 1,240,627 2 Operating income $ 136,184 $ 63,015 116 % $ 163,638 (61 )% Operating margins 8.4 % 4.8 % 11.7 % The following table shows the marine transportation markets serviced by the Company, the marine transportation revenue distribution, products moved and the drivers of the demand for the products the Company transports: Markets Serviced 2022 Revenue Distribution Products Moved Drivers Petrochemicals 49% Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene Consumer non-durables — 70% Consumer durables — 30% Black Oil 28% Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction Refined Petroleum Products 20% Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization Agricultural Chemicals 3% Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia Corn, Cotton and Wheat Production, Chemical Feedstock Usage 2022 Compared to 2021 Marine Transportation Revenues KMT’s revenues for 2022 increased 22% compared to 2021 and operating income increased 116%, compared to 2021.
Results of Operations The following table sets forth the Company’s marine transportation and distribution and services revenues and the percentage of each to total revenues for the comparable periods (dollars in thousands): Year Ended December 31, 2023 % 2022 % 2021 % Marine transportation $ 1,721,937 56 % $ 1,616,967 58 % $ 1,322,918 59 % Distribution and services 1,369,703 44 1,167,787 42 923,742 41 $ 3,091,640 100 % $ 2,784,754 100 % $ 2,246,660 100 % 37 Marine Transportation The following table sets forth a year over year comparison of KMT’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2023 2022 % Change 2021 % Change Marine transportation revenues $ 1,721,937 $ 1,616,967 6 % $ 1,322,918 22 % Costs and expenses: Costs of sales and operating expenses 1,136,526 1,146,657 (1 ) 924,380 24 Selling, general and administrative 134,641 128,340 5 119,017 8 Taxes, other than on income 27,602 28,235 (2 ) 30,527 (8 ) Depreciation and amortization 184,225 177,551 4 185,979 (5 ) 1,482,994 1,480,783 — 1,259,903 18 Operating income $ 238,943 $ 136,184 75 % $ 63,015 116 % Operating margins 13.9 % 8.4 % 4.8 % The following table shows the marine transportation markets serviced by the Company, the marine transportation revenue distribution, products moved and the drivers of the demand for the products the Company transports: Markets Serviced 2023 Revenue Distribution Products Moved Drivers Petrochemicals 51% Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene Consumer non-durables — 70% Consumer durables — 30% Black Oil 26% Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction Refined Petroleum Products 20% Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization Agricultural Chemicals 3% Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia Corn, Cotton and Wheat Production, Chemical Feedstock Usage 2023 Compared to 2022 Marine Transportation Revenues KMT’s revenues for 2023 increased 6% compared to 2022 and operating income increased 75%, compared to 2022.
Coastal time charters represented approximately 90% of coastal revenues under term contracts during 2022 compared to 85% during 2021. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
Coastal time charters represented approximately 90% of coastal revenues under term contracts during both 2023 and 2022. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
The 2021 fourth quarter was also impacted by a one-time deferred tax provision of $5.7 million or $0.09 per share related to a change in Louisiana tax law. See Note 9, Taxes on Income for additional information.
See Note 7, Impairments and Other Charges in the financial statements for additional information. The 2021 fourth quarter was also impacted by a one-time deferred tax provision of $5.7 million or $0.09 per share related to a change in Louisiana tax law.
The Company used discount rates of 5.5% for both the Kirby pension plan and the Higman pension plan in 2022 and 3.0% for the Kirby pension plan and 3.1% for the Higman pension plan in 2021.
The Company used discount rates of 5.1% for the Kirby pension plan and 5.2% for the Higman pension plan in 2023 and 5.5% for both the Kirby pension plan and the Higman pension plan in 2022.
The inland marine transportation fleet operated an average of 271 towboats during 2022, of which an average of 59 were chartered, compared to 250 during 2021, of which an average of 35 were chartered. The increase was primarily due to increasing business activity levels.
The inland marine transportation fleet operated an average of 280 towboats during 2023, of which an average of 64 were chartered, compared to 271 during 2022, of which an average of 59 were chartered. The increase was primarily due to higher business activity levels.
The results reflect increased business levels in both the commercial and industrial and oil and gas markets, partially offset by higher costs and expenses due to increased activity levels. General Corporate Expenses General corporate expenses for 2022, 2021, and 2020 were $18.6 million, $13.8 million and $11.1 million, respectively.
The results reflect increased business levels in both the commercial and industrial and oil and gas markets and ongoing cost management initiatives, which were partially offset by higher costs and expenses due to higher business activity. General Corporate Expenses General corporate expenses for 2023, 2022, and 2021 were $23.3 million, $18.6 million and $13.8 million, respectively.
Total equity as of December 31, 2022 increased 5% compared to December 31, 2021, primarily due to net earnings attributable to Kirby of $122.3 million and other comprehensive income of $42.8 million for 2022, partially offset by treasury stock purchases of $22.9 million.
Total equity as of December 31, 2023 increased 5% compared to December 31, 2022, primarily due to net earnings attributable to Kirby of $222.9 million and other comprehensive income of $18.2 million for 2023, partially offset by treasury stock purchases of $112.8 million.
The Company sells and manufactures various products used in oil and gas and industrial applications, including those used in hydraulic fracturing and refrigeration systems that, as compared to conventional offerings, reduce emissions. These products made up approximately 16% of KDS’s revenues in 2022.
The Company sells and manufactures various products used in oil and gas and industrial applications, including those used in hydraulic fracturing and refrigeration systems that, as compared to conventional offerings, reduce emissions.
For 2022 and 2021, the commercial and industrial market contributed 56% and 63%, respectively, of KDS revenues. The oil and gas market revenues increase compared to 2021 primarily due to higher oilfield activity which resulted in increased demand for new transmissions and parts in the distribution business.
The oil and gas market revenues increase compared to 2022 primarily due to higher oilfield activity which resulted in increased demand for new transmissions and parts in the distribution business.
Operating lease right-of-use assets as of December 31, 2022 decreased 8% compared to December 31, 2021, primarily due to lease amortization expense, partially offset by new leases acquired. Other intangibles, net, as of December 31, 2022 decreased 14% compared to December 31, 2021, primarily due to amortization.
Operating lease right-of-use assets as of December 31, 2023 decreased 1% compared to December 31, 2022, primarily due to lease amortization expense, partially offset by new leases acquired.
For 2021, coastal tank barge utilization levels averaged in the mid-70% range during the 2021 first quarter, the low to mid-70% range during the 2021 second quarter, the mid-70% range during the 2021 third quarter and the 90% range during the 2021 fourth quarter.
Coastal tank barge utilization levels during 2023 averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
For 2021, coastal tank barge utilization levels averaged in the mid-70% range during the 2021 first quarter, the low to mid-70% range during the 2021 second quarter, the mid-70% range during the 2021 third quarter and the 90% range during the 2021 fourth quarter.
Coastal tank barge utilization levels during 2023 averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter, and the low to mid-90% range during the 2023 fourth quarter.
For 2022 and 2021, the inland tank barge fleet contributed 79% and 76%, respectively, and the coastal fleet contributed 21% and 24%, respectively, of marine transportation revenues.
For 2023 and 2022, the inland tank barge fleet contributed 82% and 79%, respectively, and the coastal fleet contributed 18% and 21%, respectively, of marine transportation revenues.
For 2022 and 2021, the inland tank barge fleet contributed 79% and 76%, respectively, and the coastal fleet contributed 21% and 24%, respectively, of marine transportation revenues.
For 2023 and 2022, the inland tank barge fleet contributed 82% and 79%, respectively, and the coastal fleet contributed 18% and 21%, respectively, of marine transportation revenues.
Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months. 32 The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2022 compared to contracts renewed during the corresponding quarter of 2021: Three Months Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Inland market: Term increase 7% – 9% 14% – 16% 13% – 15% 10% – 15% Spot increase 15% – 20% 15% – 18% 23% – 27% 20% – 25% Coastal market (a): Term increase 4% – 6% 10% – 12% 19% – 21% 10% – 12% Spot increase 4% – 6% 10% – 12% 18% – 22% 15% – 20% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2023 compared to contracts renewed during the corresponding quarter of 2022: Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Inland market: Term increase 10% – 12% 10% – 12% 7% – 9% 7% – 9% Spot increase 23% – 26% 26% – 29% 14% – 16% 15% – 18% Coastal market (a): Term increase 10% – 12% 16% – 18% 10% – 12% 20% – 22% Spot increase 20% – 23% 25% – 28% 31% – 33% 34% – 36% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million and expires July 29, 2027. The 2023 Notes do not mature until February 27, 2023 and require no prepayments.
The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million and expires July 29, 2027. The 4.2% senior unsecured notes do not mature until March 1, 2028 and require no prepayments.
The black oil market, which contributed 28% of marine transportation revenues for 2022, reflected improved demand as refinery utilization and production levels of refined petroleum products and fuel oils increased following the height of the COVID-19 pandemic.
The black oil market, which contributed 26% of marine transportation revenues for 2023, reflecting improved demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
The 2021 results were impacted by a reduction in demand due to the COVID-19 pandemic and reduced volumes as a result of Hurricane Ida and Winter Storm Uri. 38 Distribution and Services The following table sets forth a year over year comparison of KDS’s revenues, costs and expenses, operating income (loss) and operating margins (dollars in thousands): Year Ended December 31, 2022 2021 % Change 2020 % Change Distribution and services revenues $ 1,167,787 $ 923,742 26 % $ 767,143 20 % Costs and expenses: Costs of sales and operating expenses 913,624 728,855 25 604,238 21 Selling, general and administrative 163,642 141,100 16 140,449 — Taxes, other than on income 6,708 5,607 20 6,392 (12 ) Depreciation and amortization 16,776 20,573 (18 ) 28,255 (27 ) 1,100,750 896,135 23 779,334 15 Operating income (loss) $ 67,037 $ 27,607 143 % $ (12,191 ) 326 % Operating margins 5.7 % 3.0 % (1.6 )% The following table shows the markets serviced by the Company, the revenue distribution, and the customers for each market: Markets Serviced 2022 Revenue Distribution Customers Commercial and Industrial 56% Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers, Pleasure Crafts, On and Off-Highway Transportation, Power Generation, Standby Power Generation, Pumping Stations, Mining Oil and Gas 44% Oilfield Services, Oil and Gas Operators and Producers 2022 Compared to 2021 Distribution and Services Revenues KDS revenues for 2022 increased 26% compared to 2021.
Distribution and Services The following table sets forth a year over year comparison of KDS’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2023 2022 % Change 2021 % Change Distribution and services revenues $ 1,369,703 $ 1,167,787 17 % $ 923,742 26 % Costs and expenses: Costs of sales and operating expenses 1,040,905 913,624 14 728,855 25 Selling, general and administrative 187,424 163,642 15 141,100 16 Taxes, other than on income 7,051 6,708 5 5,607 20 Depreciation and amortization 19,842 16,776 18 20,573 (18 ) 1,255,222 1,100,750 14 896,135 23 Operating income $ 114,481 $ 67,037 71 % $ 27,607 143 % Operating margins 8.4 % 5.7 % 3.0 % The following table shows the markets serviced by the Company, the revenue distribution, and the customers for each market: Markets Serviced 2023 Revenue Distribution Customers Commercial and Industrial 59% Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers, Pleasure Crafts, On and Off-Highway Transportation, Power Generation, Standby Power Generation, Pumping Stations, Mining Oil and Gas 41% Oilfield Services, Oil and Gas Operators and Producers 40 2023 Compared to 2022 Distribution and Services Revenues KDS revenues for 2023 increased 17% compared to 2022.
Also, the 2022 first quarter was impacted by the COVID-19 Omicron variant as increased cases of the virus among the Company’s mariners led to crewing challenges, lost revenue and increased operating costs.
Revenues and operating income in 2022 were impacted by record low water levels on the Mississippi River during the 2022 fourth quarter. Also, the 2022 first quarter was impacted by the COVID-19 Omicron variant as increased cases of the virus among the Company’s mariners led to crewing challenges, lost revenue and increased operating costs.
Also, the 2022 first quarter was impacted by the COVID-19 Omicron variant as increased cases of the virus among the Company’s mariners led to crewing challenges, lost revenue and increased operating costs.
Revenues and operating income in 2022 were impacted by record low water levels on the Mississippi River during the 2022 fourth quarter. Also, the 2022 first quarter was impacted by the COVID-19 Omicron variant as increased cases of the virus among the Company’s mariners led to crewing challenges, lost revenue and increased operating costs.
Financial Condition, Capital Resources and Liquidity Balance Sheet The following table sets forth a year over year comparison of the significant components of the balance sheets (dollars in thousands): December 31, 2022 2021 % Change 2020 % Change Assets: Current assets $ 1,211,759 $ 1,003,865 21 % $ 1,047,971 (4 )% Property and equipment, net 3,633,462 3,678,515 (1 ) 3,917,070 (6 ) Operating lease right-of-use assets 154,507 167,730 (8 ) 174,317 (4 ) Investment in affiliates 2,171 2,134 2 2,689 (21 ) Goodwill 438,748 438,748 — 657,800 (33 ) Other intangibles, net 51,463 60,070 (14 ) 68,979 (13 ) Other assets 62,814 48,001 31 55,348 (13 ) $ 5,554,924 $ 5,399,063 3 % $ 5,924,174 (9 )% Liabilities and stockholders’ equity: Current liabilities $ 642,197 $ 543,772 18 % $ 466,032 17 % Long-term debt, net — less current portion 1,076,326 1,161,433 (7 ) 1,468,546 (21 ) Deferred income taxes 625,884 574,152 9 606,844 (5 ) Operating lease liabilities — less current portion 142,140 159,672 (11 ) 163,496 (2 ) Other long-term liabilities 23,209 71,252 (67 ) 131,703 (46 ) Total equity 3,045,168 2,888,782 5 3,087,553 (6 ) $ 5,554,924 $ 5,399,063 3 % $ 5,924,174 (9 )% 2022 Compared to 2021 Current assets as of December 31, 2022 increased 21% compared to December 31, 2021.
Financial Condition, Capital Resources and Liquidity Balance Sheet The following table sets forth a year over year comparison of the significant components of the balance sheets (dollars in thousands): December 31, 2023 2022 % Change 2021 % Change Assets: Current assets $ 1,135,161 $ 1,211,759 (6 )% $ 1,003,865 21 % Property and equipment, net 3,861,105 3,633,462 6 3,678,515 (1 ) Operating lease right-of-use assets 152,216 154,507 (1 ) 167,730 (8 ) Investment in affiliates 2,576 2,171 19 2,134 2 Goodwill 438,748 438,748 — 438,748 — Other intangibles, net 42,927 51,463 (17 ) 60,070 (14 ) Other assets 89,464 62,814 42 48,001 31 $ 5,722,197 $ 5,554,924 3 % $ 5,399,063 3 % Liabilities and stockholders’ equity: Current liabilities $ 675,795 $ 642,197 5 % $ 543,772 18 % Long-term debt, net — less current portion 1,008,527 1,076,326 (6 ) 1,161,433 (7 ) Deferred income taxes 696,557 625,884 11 574,152 9 Operating lease liabilities — less current portion 138,811 142,140 (2 ) 159,672 (11 ) Other long-term liabilities 15,830 23,209 (32 ) 71,252 (67 ) Total equity 3,186,677 3,045,168 5 2,888,782 5 $ 5,722,197 $ 5,554,924 3 % $ 5,399,063 3 % 2023 Compared to 2022 Current assets as of December 31, 2023 decreased 6% compared to December 31, 2022.
In addition to net cash flow provided by operating activities, as of February 17, 2023, the Company had cash equivalents of $316.5 million, availability of $494.9 million under its Revolving Credit Facility and $9.4 million available under its Credit Line.
In addition to net cash flow provided by operating activities, as of February 16, 2024, the Company had cash equivalents of $53.4 million, availability of $381.0 million under its Revolving Credit Facility and $2.7 million available under its Credit Line.
The 2021 third quarter included $340.7 million before taxes, $275.1 million after taxes, or $4.58 per share, non-cash charges related to impairment of long-lived assets related to coastal marine transportation equipment and impairment of goodwill in KMT. See Note 7, Impairments and Other Charges in the financial statements for additional information.
The 2022 second quarter included $1.5 million before taxes, $1.3 million after taxes, or $0.02 per share of severance expense. The 2021 third quarter included $340.7 million before taxes, $275.1 million after taxes, or $4.58 per share, non-cash charges related to impairment of long-lived assets related to coastal marine transportation equipment and impairment of goodwill in KMT.
Inland tank barge utilization levels ranged from the mid-70% range during the 2021 first quarter, the low to mid-80% range during the 2021 second quarter, the low-80% range during the 2021 third quarter and the mid-to high 80% range during the 2021 fourth quarter.
During 2022, inland tank barge utilization levels ranged from the mid-80% range during the 2022 first quarter, the low 90% range during both the 2022 second and third quarters, and the low 90% range in the 2022 fourth quarter.
Inland tank barge utilization levels ranged from the mid-70% range during the 2021 first quarter, the low to mid-80% range during the 2021 second quarter, the low 80% range during the 2021 third quarter and the mid-to high 80% range during the 2021 fourth quarter.
During 2022, inland tank barge utilization levels ranged from the mid-80% range during the 2022 first quarter, the low 90% range during both the 2022 second and third quarters, and the low 90% range in the 2022 fourth quarter.
Operating lease liabilities – less current portion, as of December 31, 2022 decreased 11% compared to December 31, 2021, primarily due to lease payments made, partially offset by new leases acquired and liability accretion.
Deferred income taxes as of December 31, 2023 increased 11% compared to December 31, 2022, primarily reflecting the 2023 deferred tax provision of $65.3 million. Operating lease liabilities – less current portion, as of December 31, 2023 decreased 2% compared to December 31, 2022, primarily due to lease payments made, partially offset by new leases acquired and liability accretion.
(b) Variable interest rate of 1.5% at December 31, 2021. (c) Excludes $1.8 million attributable to the 2027 Revolving Credit Facility included in other assets at December 31, 2022 and $1.4 million attributable to the 2024 Revolving Credit Facility included in other assets at December 31, 2021.
(b) Excludes $1.8 million attributable to the 2027 Revolving Credit Facility included in other assets at December 31, 2022.
Increases in KMT revenues and operating income were driven by increased barge utilization and higher term and spot contract pricing in the inland and coastal markets during 2022. KMT revenues and operating income during 2021 were negatively impacted by Winter Storm Uri in the 2021 first quarter and Hurricane Ida in the 2021 third quarter.
Increases in KMT revenues and operating income were driven by increased barge utilization and higher term and spot contract pricing in the inland and coastal markets during 2023.
The agricultural chemical market, which contributed 3% of marine transportation revenues for 2022, reflected improved demand for transportation of both domestically produced and imported products, primarily due to improved economic conditions following the height of the COVID-19 pandemic. Inland operations incurred 10,244 delay days in 2022, 7% more than the 9,605 delay days that occurred during 2021.
The agricultural chemical market, which contributed 3% of marine transportation revenues for 2023, also experienced improved demand for transportation of both domestically produced and imported products. Inland operations incurred 10,863 delay days in 2023, 6% more than the 10,244 delay days that occurred during 2022.
The 2027 Term Loan is repayable in quarterly installments with no repayments required until June 30, 2025, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable upon maturity, assuming no prepayment. Borrowings under the 2027 Credit Agreement may be used for general corporate purposes including acquisitions.
The 2027 Term Loan is repayable in quarterly installments, with no repayments until June 30, 2025, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable upon maturity, assuming no prepayment. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
The Company is authorized to purchase its common stock on the New York Stock Exchange and in privately negotiated transactions. When purchasing its common stock, the Company is subject to price, trading volume and other market considerations.
Historically, treasury stock purchases have been financed through operating cash flows and borrowings under the Company’s Revolving Credit Facility. The Company is authorized to purchase its common stock on the New York Stock Exchange and in privately negotiated transactions. When purchasing its common stock, the Company is subject to price, trading volume and other market considerations.
The Company also used $9.1 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above. Treasury Stock Purchases During 2022, the Company purchased 0.4 million shares of its common stock for $22.9 million, at an average price of $59.32 per share. The Company did not purchase any treasury stock during 2021 or 2020.
The Company also used $3.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above. Treasury Stock Purchases During 2023, the Company purchased 1.5 million shares of its common stock for $112.8 million, at an average price of $75.95 per share.
As of December 31, 2022, the Company’s pension plan funding was 105% of the pension plans’ ABO, including the Higman pension plan. The Company expects to make additional pension contributions of $8.4 million in 2023.
As of December 31, 2023, the Company’s pension plan funding was 115% of the pension plans’ ABO, including the Higman pension plan. The Company expects to make additional pension contributions of $1.8 million in 2024. The Company has certain mechanisms designed to help mitigate the impacts of rising costs.
Approximately 60% of the inland marine transportation revenues were under term contracts and 40% were spot contract revenues in 2022. Approximately 65% of the inland marine transportation revenues were under term contracts and 35% were spot contract revenues in 2021. Term contracts provide the operations with a reasonably predictable revenue stream.
The 2023 third quarter was also impacted by lock closures on the Illinois River. Approximately 60% of the inland marine transportation revenues were under term contracts and 40% were under spot contracts in 2023 and 2022. Term contracts provide the operations with a reasonably predictable revenue stream.
The Company’s debt-to-capitalization ratio decreased to 26.2% at December 31, 2022 from 28.7% at December 31, 2021, primarily due to repayments in 2022 under the 2024 Term Loan and an increase in total equity, which improved as a result of net earnings attributable to Kirby of $122.3 million during 2022, partially offset by treasury stock purchases of $22.9 million.
The Company’s debt-to-capitalization ratio decreased to 24.2% at December 31, 2023 from 26.2% at December 31, 2022, primarily due an increase in total equity, primarily from net earnings attributable to Kirby of $222.9 million during 2023 and a reduction of debt outstanding of $63.0 million, partially offset by treasury stock purchases of $112.8 million.
On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).
The 2028 Notes also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. 44 On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).

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